What Action Must Wigan Ltd Take That Is in Compliance

question 54

Multiple Choice

What action must Wigan Ltd take that is in compliance with AASB 2,if the option does not vest on 30 June 2012?

• A) No action necessary.
• B) It must modify the terms and conditions of the option to allow the employees to benefit from the share-based payment transaction in future.
• C) The equity account arising from the share-based payment transaction shall be reversed and credited to revenue.
• D) The equity account arising from the share-based payment transaction shall be reversed and credited to liability.
• E) None of the given answers.

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Definitions:

Chelicerates

A subgroup of arthropods that includes spiders, scorpions, ticks, and mites, characterized by the presence of chelicerae, which are claw-like mouthparts.

Crustaceans

Mostly marine arthropods with a calcium-hardened cuticle and two pairs of antennae; for example, lobsters, crabs, krill, and barnacles.

Antennae

Antennae are sensory appendages found on the heads of insects and some other arthropods, used for sensing the environment.

Radula

A unique, tongue-like structure in mollusks, used for feeding by scraping or cutting food before ingestion.