CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 43 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 43
Topic #: 1

GH granted 100 share options to each of its 1,000 employees on 1 January 20X8. The fair value of each option was $7 on 1 January 20X8 and had risen to $8 at 31 December 20X8.

Whichof the following statements represents the treatment that GH adopted to account for the related expense of these share options in its financial statements for the year ended 31 December 20X8, in accordance with IFRS 2 Share-based Payments?

AThe expense was measured using the fair value of $7 and the credit entry was to equity.

BThe expense was measured using the fair value of $7 and the credit entry was to liabilities.

CThe expense was measured using the fair value of $8 and the credit entry was to equity.

DThe expense was measured using the fair value of $8 and the credit entry was to liabilities.

Show Suggested Answer

Suggested Answer: A

by Rozella at May 06, 2022, 10:10 AM

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