Which of the Following Share-Based Payment Transactions Are Considered Cash-Settled

question 31

Multiple Choice

Which of the following share-based payment transactions are considered cash-settled transactions within the scope of AASB 2?

• A) Company A grants 5000 options each to its directors in return for services to be received over two years.
• B) Company B purchases machinery in exchange for shares.
• C) Company C incurs a liability based on the price of the entity's share options to pay for the services of its sales executives.
• D) Company A grants 5000 options each to its directors in return for services to be received over two years; Company B purchases machinery in exchange for shares.

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Definitions:

Opportunity Cost

The cost of forgone alternatives, or the benefits that could have been received by choosing the next best alternative.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses, including oil and feedstock.

Alfalfa

Alfalfa is a perennial flowering plant widely cultivated as fodder for cattle due to its high nutrient content.

Comparative Advantage

An economic principle that suggests a country, individual, or company is most efficient at producing a certain good or service compared to others, enabling trade benefits.