A Share-Based Payment Transaction in Which the Entity Receives Goods

question 13

Multiple Choice

A share-based payment transaction in which the entity receives goods or services as consideration for equity instruments of the entity is classified in IFRS 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:

Asset

Resources owned by a company that have economic value and can provide future benefits, such as cash, inventory, and equipment.

Liability

A liability refers to financial obligations or debts that a company owes and is required to repay in the future.

Accounting Equation

The fundamental equation of accounting, Assets = Liabilities + Shareholder's Equity, representing the relationship between a company's resources and claims against those resources.

Supplies

Items that are consumed or used up in the daily operations of a business, like office supplies or manufacturing materials.