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    Module 34 Share Based Compensation Theory

    Uploaded by

    Thalia Uy
    This document contains 10 multiple choice questions regarding accounting for share-based compensation plans. The questions cover topics such as: measuring the total compensation expense for share option plans; recognizing compensation expense for share options that vest immediately or do not vest immediately; accounting for unanticipated forfeitures; presenting share options outstanding on the balance sheet; accounting for cash-settled share-based payment transactions; recognizing changes in fair value for cash-settled plans; and accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

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    Module 34 Share Based Compensation Theory

    Uploaded by

    Thalia Uy
    303 views2 pages
    This document contains 10 multiple choice questions regarding accounting for share-based compensation plans. The questions cover topics such as: measuring the total compensation expense for share option plans; recognizing compensation expense for share options that vest immediately or do not vest immediately; accounting for unanticipated forfeitures; presenting share options outstanding on the balance sheet; accounting for cash-settled share-based payment transactions; recognizing changes in fair value for cash-settled plans; and accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

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    This document contains 10 multiple choice questions regarding accounting for share-based compensation plans. The questions cover topics such as: measuring the total compensation expense for share option plans; recognizing compensation expense for share options that vest immediately or do not vest immediately; accounting for unanticipated forfeitures; presenting share options outstanding on the balance sheet; accounting for cash-settled share-based payment transactions; recognizing changes in fair value for cash-settled plans; and accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    303 views2 pages

    Module 34 Share Based Compensation Theory

    Uploaded by

    Thalia Uy
    This document contains 10 multiple choice questions regarding accounting for share-based compensation plans. The questions cover topics such as: measuring the total compensation expense for share option plans; recognizing compensation expense for share options that vest immediately or do not vest immediately; accounting for unanticipated forfeitures; presenting share options outstanding on the balance sheet; accounting for cash-settled share-based payment transactions; recognizing changes in fair value for cash-settled plans; and accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    PSBA Integrated Review

    Financial Accounting and Reporting – Theory Christian Aris Valix


    Share-based compensation

    1. The total compensation expense in a share option plan normally is measured at

    a. Fair value of the share options at the date of grant


    b. Fair value of the share options at the date of exercise
    c. Intrinsic value of the share options
    d. Par value of the shares to be issued

    2. If the fair value of the share options cannot be determined, the compensation is measured at

    a. Book value of the shares


    b. Par value of the shares
    c. Intrinsic value of the share options
    d. Stated value of the shares

    3. Compensation is recognized as an expense immediately if the share options

    a. Do not vest immediately


    b. Vest immediately
    c. Are not exercised
    d. Are expired

    4. When recognizing compensation under a share option plan, unanticipated forfeitures are
    treated as

    a. An income item
    b. A loss
    c. A change in accounting estimate
    d. A change in accounting policy

    5. Share options outstanding is presented as

    a. A liability
    b. A component of share premium
    c. A component of share capital
    d. A component of retained earnings

    6. A cash-settled share-based payment transaction increases

    a. A noncurrent asset
    b. A current asset
    c. A liability
    d. Equity
    7. For cash-settled share-based payment, any change in the fair value of the liability is

    a. Included in profit or loss


    b. Included in OCI
    c. Included in retained earnings
    d. Not recognized

    8. Which statement is true regarding share appreciation rights?

    a. Any change in total compensation is recognized as a correction of error


    b. Total amount of compensation is not known until the date the rights are exercised
    c. Liability is adjusted only to reflect each additional year of service
    d. Compensation expense is only recognized when the rights are exercised.

    9. If the employee has the right to choose whether to receive shares or cash, the entity is
    deemed to have issued

    a. An equity instrument only


    b. A liability instrument only
    c. A compound financial instrument
    d. A derivative instrument

    10. Which of the following is false about modification from cash-settled to equity-settled?

    a. The equity-settled share-based payment is measured at the fair value of the equity
    instruments at modification date and recognized in equity.
    b. The liability from the cash-settled share-based payment as of modification date is not
    derecognized.
    c. The difference between carrying amount of liability and the amount of equity is
    recognized in profit or loss.
    d. The liability from the cash-settled share-based payment is adjusted until the date of
    modification.

    END

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