In a Share-Based Payment Transaction Like an Option,which of the Following

question 72

Multiple Choice

In a share-based payment transaction like an option,which of the following accounting treatments is incorrect?

• A) An entity shall recognise the goods or services received or acquired in a share-based payment transaction when it obtains the goods or as the services are received.
• B) The entity shall recognise a corresponding increase in equity if the goods or services were received in an equity-settled share-based payment transaction.
• C) The entity shall recognise a corresponding increase in liability if the goods or services were acquired in a cash-settled share-based payment transaction.
• D) Goods or services received or acquired in a share-based payment transaction shall be recognised as expenses.

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Definitions:

Welfare Dependency

A situation where individuals or families rely on government welfare programs as their main source of income over extended periods.

Under 18

A term typically referring to individuals who are below the age of 18, often used in contexts regarding employment, legal responsibilities, and rights.

Poor

The state of having insufficient financial resources to meet basic living expenses such as food, clothing, and housing, resulting in a low standard of living.

Lower Two Quintiles

Refers to the bottom 40% of the population, often in terms of income distribution, highlighting socioeconomic status.