In Relation to Equity Instruments Granted by an Entity Where

question 4

Multiple Choice

In relation to equity instruments granted by an entity where the entity makes modifications to the terms and conditions attaching to the grant,

• A) the incremental fair value is measured as the difference between the fair value of the modified instrument, estimated at the date of modification and that of the original equity instrument, estimated at the date of original granting.
• B) if the modification occurs during the vesting period the incremental fair value is recognised immediately.
• C) terms or conditions may not be modified in a manner that is not beneficial to the employee.
• D) where the exercise price of options is modified, the fair value of the options changes.

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Definitions:

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.

Voidable

A legal term referring to a contract or transaction that may be deemed invalid by one party, though it remains valid until annulled.

Fraudulent

Deceptive or dishonest behavior intended to result in financial or personal gain.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, without intent to deceive.