Under IFRS 2, with Respect to Choice-Of-Settlement Share-Based Payments, If

question 51

Multiple Choice

Under IFRS 2, with respect to choice-of-settlement share-based payments, if it is the entity that has the right to choose between equity settlement and cash settlement, when must the entity choose the cash settlement?

• A) If the supplier provides services
• B) If the supplier provides goods
• C) If the entity has a present obligation to settle in cash
• D) The entity always has the option to choose either method.

Grasp the accounting treatment for intercompany dividends in consolidated financial statements.

Understand the effects of intercompany transactions on consolidated income tax expense and deferred taxes.

Learn the methods to calculate and adjust for depreciation expense in the context of intercompany equipment sales.

Understand the consolidation adjustments for over or underestimated fair value adjustments of acquired assets.

---

Definitions:

Hill-climbing

A mathematical optimization technique that involves iterative progress toward a solution or goal by incrementally improving from the current state.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to quicker but sometimes less accurate judgments.

Vocabulary

The set of words known and used by a person in a language.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving and creativity.