{"id":58746,"date":"2024-04-16T01:24:52","date_gmt":"2024-04-16T01:24:52","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58746"},"modified":"2024-04-16T01:24:52","modified_gmt":"2024-04-16T01:24:52","slug":"ifrs-2-applies-to-share-based-payment-transactions-in-which-an-entity-goods-or-services","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/ifrs-2-applies-to-share-based-payment-transactions-in-which-an-entity-goods-or-services\/","title":{"rendered":"IFRS-2 applies to share-based payment transactions in which an entity . . . . . . . . goods or services."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a978efec17d3\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    acquires                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    receives                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    transfers                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Both A and B                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>Both A and B<\/strong>.<\/p>\n<p>IFRS 2 applies to share-based payment transactions in which an entity acquires goods or services by way of equity instruments, or acquires or receives goods or services and settles the consideration by issuing equity instruments.<\/p>\n<p>Share-based payment transactions are transactions in which an entity acquires goods or services by way of equity instruments, or acquires or receives goods or <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> services and settles the consideration by issuing equity instruments.<\/p>\n<p>Equity instruments are contracts that give the holder the right to acquire an ownership interest in an entity or to receive cash or other assets from an entity for the surrender of that right.<\/p>\n<p>Share-based payment transactions can take many forms, including:<\/p>\n<ul>\n<li>Share options<\/li>\n<li>Share awards<\/li>\n<li>Performance shares<\/li>\n<li>Restricted share units<\/li>\n<li>Share appreciation rights<\/li>\n<li>Employee share purchase plans<\/li>\n<\/ul>\n<p>IFRS 2 requires an entity to recognize the goods or services received in a share-based payment transaction at fair value at the date the entity <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> obtains the goods or services. The fair value of the goods or services received is usually measured by reference to the market price of the entity&#8217;s equity instruments at the date the entity obtains the goods or services.<\/p>\n<p>The entity also recognizes an expense for the goods or services received in a share-based payment transaction. The expense is recognized over the period in which the entity expects to benefit from the goods or services received.<\/p>\n<p>The expense is measured as the fair value of the equity instruments granted, less any amount that has been recognized as equity.<\/p>\n<p>IFRS 2 also requires an entity to disclose information about its share-based payment transactions. This information includes:<\/p>\n<ul>\n<li>The nature and extent of share-based payment arrangements<\/li>\n<li>The fair value of the equity instruments granted<\/li>\n<li>The amount recognized as an expense in the income statement<\/li>\n<li>The effect of share-based payment transactions on the entity&#8217;s net profit or loss and equity<\/li>\n<\/ul>\n<p>IFRS 2 is a complex standard that requires careful application. If you have any questions about IFRS 2, please consult with a qualified accountant.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IFRS-2 applies to share-based payment transactions in which an entity . . . . . . . . goods or services.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/ifrs-2-applies-to-share-based-payment-transactions-in-which-an-entity-goods-or-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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