Under IFRS 2, with Respect to Cash-Settled Share-Based Payments, When

question 49

Multiple Choice

Under IFRS 2, with respect to cash-settled share-based payments, when an employee has received stock appreciation rights, how is the fair value of those rights measured?

• A) Using the consolidation method
• B) Using an option pricing model
• C) Using the dividend discount approach
• D) All of the above

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Definitions:

Original Cost

The initial purchase price or investment made to acquire an asset, not accounting for depreciation or amortization.

Asset Improvements

Expenditures made to increase the usefulness or value of a fixed asset.

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.

Asset Improvements

Asset improvements involve the enhancement or upgrade of an asset, increasing its value or extending its useful life, without necessarily changing its original purpose.