A Share -Based Payment Transaction in Which the Entity Acquires

question 22

Multiple Choice

A share -based payment transaction in which the entity acquires goods or services by incurring liabilities to the supplier for amounts that are based on the value of the entity's shares or other equity instruments of the entity is classified in AASB 2 Share-based Payment as

• A) an equity-settled share-based payment transaction
• B) a cash-settled share-based payment transaction
• C) a liability-settled share-based payment transaction
• D) an "other" share-based payment transaction

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Definitions:

Investing Activities

Transactions related to the purchase or sale of long-term assets and investments, which are part of the cash flow statement indicating how cash is invested.

Financing Activities

Activities involving the acquisition of funds and the settlement of obligations with investors, such as the issuance of stocks and bonds, and the distribution of dividends.

Direct Method

A cash flow statement approach that lists major classes of gross cash receipts and payments, providing a clear view of actual cash flow.

Investing Activities

Investing Activities are financial transactions related to the acquisition or disposal of long-term assets and investments not related to the entity's primary operations.