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:

Fundamental Principles

Basic foundational rules or beliefs that guide actions and decisions in various contexts.

Future Market Share

An estimation of the portion of a market that a company or product is expected to capture in the future.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action for individuals or organizations.

Humbleness and Willpower

Traits referring to the modesty in one's own abilities and the persistence to achieve goals despite obstacles.