AASB 124 Provides Guidance Regarding the Measurement of Remuneration Amounts

question 62

Multiple Choice

AASB 124 provides guidance regarding the measurement of remuneration amounts for directors such that:

• A) Remuneration should be measured at cost to the entity or related party and includes any money, consideration or employee benefits paid, payable or provided.
• B) Where directly identifiable, the remuneration should be measured at cost; however, where the measurement of considerations or benefit requires an estimation, the amount should be reflected at fair value according to an arm's length transaction for a similar consideration or benefit.
• C) Remuneration amounts should be disclosed at the fair value of the elements of the emoluments package offered, including any benefits or consideration that take the form of access to resources of the entity or its related parties.
• D) Remuneration amounts should be disclosed at the net realisable value of the elements of the emoluments package offered. In the case of benefits or considerations that take the form of access to resources of the entity or its related parties, these should be disclosed at the deprival value to the relevant entity.

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