Which of the Following Share-Based Payment Transactions Are Considered Cash-Settled

question 39

Multiple Choice

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

• A) Company A grants 5,000 options each to its directors in return for services to be received over two years.
• B) Company B purchases machinery in exchange for shares.
• C) Company C incurs a liability based on the price of the entity's share options to pay for the services of its sales executives.
• D) All of the given answers.
• E) Company A grants 5 000 options each to its directors in return for services to be received over two years; Company B purchases machinery in exchange for shares.

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Definitions:

Interest Costs

The cost associated with borrowing funds, typically expressed as a percentage of the total amount borrowed.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.

Behavioral Economists

Researchers who study the psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Ethical Considerations

Refers to the moral principles and values that govern the actions and decisions in a work environment or study.