Which of the Following Statements Is Incorrect of Cash-Settled Share-Based

question 26

Multiple Choice

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

• A) The entity acquires goods and services by incurring a liability to transfer cash or other assets that are based on the price or value of the entity's shares or other equity instruments of the entity.
• B) Share appreciation rights (SARs) is one example of a cash-settled share-based payment transaction.
• C) Cash-settled share-based payment transactions are required to be re-measured at fair value at each reporting date until settlement date.
• D) The equity shall be measured, initially and at each reporting date until settled, at the fair value of the share appreciation rights, by applying an option pricing model, taking into account the terms and conditions on which the share appreciation rights were granted, and the extent to which the employees have rendered service to date.
• E) The entity shall recognise a corresponding increase in liability if the goods or services were acquired in a cash-settled share-based payment transaction.

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Definitions:

Homosexual Couples

Romantic partnerships between individuals of the same sex or gender identity.

Heterosexual Intercourse

Sexual activity between individuals of the opposite sex, often associated with reproduction but also engaged in for pleasure.

Masturbate

The act of sexually stimulating oneself, often leading to orgasm.

Sexual Desire

Sexual desire is the interest or attraction towards others that can lead to sexual thoughts or activities, influenced by biological, psychological, and social factors.