Exam 18: Accounting for Share-Based Payments

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What is/are the journal entry(ies)to recognise salary expense for Southport Ltd.related to the share appreciation rights issued 1 July 2009 for the year ended 30 June 2013?

(Multiple Choice)

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Question 21

When good or services are acquired in a share-based payment transaction and it does qualify as an asset,the transaction must be expensed.

(True/False)

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Question 22

North Terraces Ltd issued share options to its executives two years ago.The options did not vest and has now expired.The cumulative salary benefits expense related to this option issue before its expiry amounts to $150,000.What is the appropriate course of action to take for North Terraces Ltd that is in accordance with AASB 2?

(Multiple Choice)

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Question 23

In accordance with AASB 2,how much Employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2010?

(Multiple Choice)

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Question 24

If the fair value of the equity instruments granted in a share-based payment transaction cannot be estimated,the entity shall measure the fair value of the goods received.

(True/False)

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Question 25

Which of the following statements is incorrect of cash-settled share-based payment transactions?

(Multiple Choice)

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Question 26

Mission Beach Ltd grants 100 options to each of its 50 employees on 1 July 2009.Each grant is conditional on the employee working for the company for 3 years.The fair value of each option at grant date is $15. The following information is available: What is the employee benefits expense of Mission Beach Ltd related to this share option for the year ended 30 June 2011?

(Multiple Choice)

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Question 27

On 1 July 2009 Lancaster Ltd grants 100 share options to each of its 50 employees conditional upon the employee working for the entity for the next three years.The entity estimates the fair value of each share option at $13.Based on probability estimates,25 employees are expected to leave the entity before the options vests.In accordance with AASB 2,how much remuneration expense related to the share option issue should Lancaster Ltd recognise for the year ended 30 June 2010?

(Multiple Choice)

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Question 28

Which of the following items are not considered share-based payment transactions within the scope of AASB 2?

(Multiple Choice)

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Question 29

AASB 2 requires that good and services received in an equity-settled share based transactions be measured in reference to fair value of equity instruments granted.

(True/False)

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Question 30

In accordance with AASB 2,how much Employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2011?

(Multiple Choice)

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Question 31

AASB 2 requires all share-based payment transactions to be measured at grant date:

(True/False)

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Question 32

Equity instruments granted to employees of the acquiree in their capacity as employees in a business combination is within the scope of AASB 2.

(True/False)

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Question 33

Issue of shares in exchange for shares of another entity in a purchase transaction of the net assets of an entity in a business combination is within the scope of AASB 2 "Share-based Payment".

(True/False)

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Question 34

What is the Employee benefits expense of Liverpool Ltd related to this share option for the year ended 30 June 2010?

(Multiple Choice)

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Question 35

Which of the following is an acceptable measure of fair value of the equity instruments granted?

(Multiple Choice)

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Question 36

Winton Ltd grants 100 options to each of its 50 employees on 1 July 2009.Each grant is conditional on the employee working for the company for 3 years.The fair value of each option at grant date is $15. The following information is available: What is the employee benefits expense of Winton Ltd related to this share option for the year ended 30 June 2010,2011 and 2012,respectively?

(Multiple Choice)

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Question 37

AASB 2 requires the re-measurement of equity-settled transaction at fair value at reporting date.

(True/False)

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Question 38

Which of the following share-based payment transactions are considered cash-settled transactions within the scope of AASB 2?

(Multiple Choice)

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Question 39

Market prices for share options granted to employees are typically not available because:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 62

Exam 18: Accounting for Share-Based Payments

What is/are the journal entry(ies)to recognise salary expense for Southport Ltd.related to the share appreciation rights issued 1 July 2009 for the year ended 30 June 2013?

When good or services are acquired in a share-based payment transaction and it does qualify as an asset,the transaction must be expensed.

In accordance with AASB 2,how much Employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2010?

If the fair value of the equity instruments granted in a share-based payment transaction cannot be estimated,the entity shall measure the fair value of the goods received.

Which of the following statements is incorrect of cash-settled share-based payment transactions?

Which of the following items are not considered share-based payment transactions within the scope of AASB 2?

AASB 2 requires that good and services received in an equity-settled share based transactions be measured in reference to fair value of equity instruments granted.

In accordance with AASB 2,how much Employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2011?

AASB 2 requires all share-based payment transactions to be measured at grant date:

Equity instruments granted to employees of the acquiree in their capacity as employees in a business combination is within the scope of AASB 2.

Issue of shares in exchange for shares of another entity in a purchase transaction of the net assets of an entity in a business combination is within the scope of AASB 2 "Share-based Payment".

What is the Employee benefits expense of Liverpool Ltd related to this share option for the year ended 30 June 2010?

Which of the following is an acceptable measure of fair value of the equity instruments granted?

AASB 2 requires the re-measurement of equity-settled transaction at fair value at reporting date.

Which of the following share-based payment transactions are considered cash-settled transactions within the scope of AASB 2?

Market prices for share options granted to employees are typically not available because:

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Accounting for Lease

Set-Off and Extinguishment of Debt

Accounting for Employee Benefits

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