Under IFRS 2, with Respect to Choice-Of-Settlement Share-Based Payments, If

question 36

Multiple Choice

Under IFRS 2, with respect to choice-of-settlement share-based payments, if the supplier chooses the cash settlement, the entity is deemed to have issued a compound financial instrument consisting of debt and equity.When cash is received, how does the supplier applies it?

• A)Only against the equity portion
• B)Apportioned between debt and equity based on relative fair market value of each component
• C)Only against current year liabilities
• D)Only against the debt portion

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Definitions:

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Demon Possession

A belief in the control of a person's body and actions by a malevolent supernatural being, observed in various religious and cultural contexts.

Psychological Disorders

Conditions characterized by abnormal thoughts, feelings, and behaviors that impair an individual's functioning.

Harsh Treatments

Approaches or methods that are overly strict, severe, or cruel when dealing with others or in response to problems.