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

question 37

Multiple Choice

Under IFRS 2, with respect to choice-of-settlement share-based payments, if the supplier chooses the cash settlement, the entity is deemed to have issued a compound financial instrument consisting of debt and equity. When cash is received, how does the supplier apply it?

• A) Only against the equity portion
• B) Apportioned between debt and equity based on relative fair market value of each component
• C) Only against current year liabilities
• D) Only against the debt portion

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Definitions:

Sphygmomanometer

A device used to measure blood pressure, consisting of an inflatable cuff to restrict blood flow, and a mercury or aneroid manometer.

Aphasia

A condition characterized by the loss of ability to understand or express speech, caused by brain damage.

Nontraumatic Intracranial Hemorrhage

Bleeding within the skull that is not caused by physical trauma.

Patient Treated

Refers to an individual who has received medical attention, care, or therapy for an illness or injury.