Which Method Must Be Used Under IFRS to Account for Employee

question 58

Multiple Choice

Which method must be used under IFRS to account for employee stock options?

• A)Intrinsic value of options.
• B)Time value of options.
• C)Market value of the shares.
• D)Fair value on the grant date of the options.

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Definitions:

Equity Theory

Refers to the concept in social psychology that posits individuals assess the fairness of their work outcomes in relation to their inputs compared to others.

Job Descriptive Index

A validated employee job satisfaction instrument used to evaluate individuals' satisfaction with various aspects of their jobs.

Pay

The salary or wages given to an employee in exchange for their labor or services provided to an employer.

Equity Theory

A theory in social psychology that asserts individuals assess their job satisfaction based on the fairness of their work rewards relative to others.