Under IFRS 2,Share-Based Payment,what Approach Is Used to Account for the Transaction

question 36

Multiple Choice

Under IFRS 2,Share-based Payment,what approach is used to account for the transaction?

• A)comparable transaction approach
• B)fair value approach
• C)market approach
• D)notional value approach

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Definitions:

Discounted Notes

Notes or bonds sold for less than their face value in order to reflect current market interest rates or the issuer's credit risk.

Contra-Asset Account

An account on a company's balance sheet that offsets or reduces the value of an associated asset account.

Reconciling Items

Entries that are made to adjust the books of accounts in order to ensure that two sets of records (usually the bank statement and the company's records) are in agreement.

Adjusting Journal Entry

An entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.