CIMAPRA19-F02-1 Exam - 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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Meaghan

4 months ago

I thought they had to account for the higher value at year-end?

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Lorrie

4 months ago

Definitely option A, that's how IFRS 2 works!

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Tequila

4 months ago

Wait, why would they use $8? That seems off.

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Lizbeth

4 months ago

Totally agree, it's all about the grant date value!

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Robt

5 months ago

GH should use the fair value of $7 for the expense.

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Dorothy

5 months ago

Okay, let me think this through. The bills of material would give me the components needed for each master schedule item, and then I could use that to determine the capacity required. I'm pretty sure the answer is B, bill of resources.

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Magda

5 months ago

This is a classic example of a calendar spread. Bubba is buying one put and selling another put with the same underlying but different expiration dates. Time to put my options knowledge to the test!

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Frank

5 months ago

This seems like a straightforward question about the valid metric types in Decision Center. I'm pretty confident I know the answer, so I'll just quickly review the options and select the two correct ones.

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Yvonne

5 months ago

I think the navigation button might be related to the Drawer Widget, but I'm not completely sure.

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Georgeanna

5 months ago

I'm pretty sure the answer is 'No' here. The solution specifically says to manually download the 'docker-ee' package, which means it won't be an automatic upgrade to the Enterprise Edition.

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Edison

5 months ago

I think a miner is a type of node, but I'm struggling to recall if all nodes must be miners.

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