Discuss CIMA CIMAPRA19-F02-1 Exam Topic 2 Question 124

Whichof the following, in accordance with IFRS 2 Share-based Payments, areonly applicable to the accounting treatment of cash settled rather than equity settled share-based payment schemes?

Select ALL that apply.

AThe instruments in the scheme are remeasured at the end of each financial year to fair value.

BThe instruments in the scheme are measured at the fair value at the grant date of the scheme.

CThe credit entry in the financial statements is to liabilities.

DThe credit entry in the financial statements is to equity.

EThe expense of the scheme is spread to profit or loss over the vesting period.

Suggested Answer: A, C

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20 comments · newest first

Odette 1 month ago

E seems right too. Expenses spread over the vesting period.

Annette 1 month ago

I agree with A and C. Makes sense for cash settlements.

Evangelina 2 months ago

C is a must. Liabilities are credited, not equity.

Felix 2 months ago

I feel confused about B. Isn't it just for equity settled?

Brandee 2 months ago

Definitely A. Remeasuring is key for cash settled schemes.

Lanie 2 months ago

I think A and C are correct. Cash settled means liabilities.

Joanne 2 months ago

I’m surprised A is remeasured every year! That sounds complicated.

Ollie 2 months ago

B and D are for equity settled, not cash settled.

Kristine 3 months ago

Wait, are you sure about A? I thought it was different for equity settled.

Vicki 3 months ago

Totally agree, A and C are the right ones.

Alpha 3 months ago

A and C are definitely cash settled!

Cortney 3 months ago

Right? The remeasurement at fair value is key for cash settled!

Jeanice 3 months ago

B and D are for equity settled, not cash.

Lashonda 4 months ago

Wait, are you sure about A? That sounds off.

Mozell 5 months ago

Totally agree, A and C are the ones!

Robt 5 months ago

A) and C) are definitely cash settled.

Gaston 6 months ago

I feel like E applies to both types, but I can't recall if it’s specific to cash-settled schemes.

Desire 6 months ago

I practiced a similar question, and I think C is correct because cash-settled schemes usually credit liabilities instead of equity.

Adelaide 6 months ago

I’m not entirely sure, but I think B might be for equity-settled schemes since they measure at grant date, right?

Mickie 6 months ago

I remember that cash-settled schemes require remeasurement at fair value, so I think A is definitely applicable.

CIMAPRA19-F02-1 Exam - Topic 2 Question 124 Discussion