Which of the Following Statements Is Incorrect of Cash-Settled Share-Based

question 36

Multiple Choice

Which of the following statements is incorrect of cash-settled share-based payment transactions?

• A) The entity acquires goods and services by incurring a liability to transfer cash or other assets that are based on the price or value of the entity's shares or other equity instruments of the entity.
• B) Share appreciation rights (SARs) is one example of a cash-settled share-based payment transaction.
• C) Cash-settled share-based payment transactions are required to be re-measured at fair value at each reporting date until settlement date.
• D) The equity shall be measured, initially and at each reporting date until settled, at the fair value of the share appreciation rights, by applying an option pricing model, taking into account the terms and conditions on which the share appreciation rights were granted, and the extent to which the employees have rendered service to date.

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Definitions:

Outsourced Training

The practice of hiring external entities to conduct training programs for an organization’s employees.

Internal Recruiting

The process of filling job vacancies within an organization by considering current employees for promotion or transfer.

Ripple Effect

The continuing and spreading impact of an event or action, which can affect various aspects and individuals indirectly related to the initial occurrence.

External Recruiting

The process of looking outside a company to fill job vacancies, typically through advertisements, job fairs, or recruiting agencies.