CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 80 Discussion

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

Question #: 80
Topic #: 1

LM granted 100 share options to each of its 400 employees on 1 January 20X7. The options will only vest if employees remain with LM for 3 years from the grant date. The fair value of each share option was $5 on 1 January 20X7.

20 employees left in the year to 31 December 20X7 and at that date it was estimated that a further 35 would leave over the following two years.

Which of the following journal entries did LM process to account for the share options in the year to 31 December 20X7, in accordance with IFRS2 Share-based Payments?

ADr Profit or loss $57,500 ; Cr Other reserves within equity $57,500

BDr Profit or loss $57,500 ; Cr Liabilities $57,500

CDr Profit or loss $172,500 ; Cr Other reserves within equity $172,500

DDr Profit or loss $172,500 ; Cr Liabilities $172,500

Show Suggested Answer

Suggested Answer: B

by Carey at Jan 22, 2024, 03:57 PM

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