The Treatment Recommended Under AASB 2,for Share Options Granted as Remuneration

question 27

Multiple Choice

The treatment recommended under AASB 2,for share options granted as remuneration to employees is:

• A) not to record the options, as the entity is not required to sacrifice cash
• B) to recognise the options as an expense
• C) to measure the value of the option on the grant date
• D) both B and C

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Definitions:

Principal

A person who authorizes an agent to act on her or his behalf and subject to her or his control.

Independent Contractor

An individual who provides goods or services to another entity under terms specified in a contract or within a freelance arrangement, not as an employee.

Expressly Authorized

Granted clear and definite permission or authority to do something, usually in a specific manner.

Master

An outdated term signifying an individual who has the right to control the physical conduct of a servant or employee.