Which of the Following Items Are Considered Share-Based Payment Transactions

question 46

Multiple Choice

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

• A) An entity grants 200 share options to all employees.
• B) An entity grants 200 share options to all employees but requires employees to work at least 3 years.
• C) An entity acquires a piece of equipment from another entity in exchange for shares of the entity.
• D) An entity issues share appreciation rights to its employees.
• E) All of the given answers.

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Definitions:

Physical Delivery

The actual delivery of a tangible asset or commodity from the seller to the buyer, as opposed to a delivery through transfer of ownership documents or digital records.

Merchant

A business or individual engaged in commercial trade or sales.

Article 2

A reference that could pertain to various legal documents; often associated with the Uniform Commercial Code in the United States, which governs sales of goods.

Reasonable Price

A price that is fair and sensible for the goods or services provided, often considered in legal and economic contexts.