Which of the Following Is Within the Scope of IAS

question 12

Multiple Choice

Which of the following is within the scope of IAS 39?

• A) a lease obligation to which IAS 17 applies
• B) a lease renewal option within a lease agreement
• C) a contract for contingent consideration payable in a business combination covered by IFRS 3
• D) a share option issued under an employee share scheme which is covered by IFRS 2.

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Accounting

The systematic process of recording, measuring, and communicating financial information to help in decision-making.

Supplies Used

The amount of supplies consumed during a specific period, which may be accounted for as an expense.

Balance Sheet

A ledger entry detailing a business’s resources, debts, and equity ownership at a fixed point in time.