Recognition and measurement Disclosure

Chapter 17 – Employee Benefits Page 241 7. Under IFRS2 Share-based payment, in which ONE of the following will a cash-settled share-based payment give rise to an increase? A A current asset B A non-current asset C Equity D A liability 8. Are the following statements about a cash-settled share-based payment transaction true or false, according to IFRS2 Share-based payment? 1 The fair value of the liability should be remeasured at the end of each reporting period. 2 The fair value of the liability should be remeasured at the date of settlement. Statement 1 Statement 2 A False False B False True C True False D True True 9. Are the following statements about share options granted to employees in exchange for their services true or false, according to IFRS2 Share-based payment? 1 The services received should be measured at the fair value of the employees services. 2 Fair value should be measured at the date the options vest. Statement 1 Statement 2 A False False B False True C True False D True True Chapter 17 – Employee Benefits Page 242 10. The Taupo Company has entered into a contract with The Galilee Company. Galilee will supply Taupo with a range of services. The payment for those services will be in cash and based upon the price of Taupos ordinary shares on completion of the contract. In accordance with IFRS2 Share-based payment, what type of share-based payment transaction does this represent? A Asset-settled share-based payment transaction B Liability-settled share-based payment transaction C Cash-settled share-based payment transaction D Equity-settled share-based payment transaction 11. The White Company set up a defined benefit post-employment plan with effect from 1 January 20X7. In the first year the expected return on plan assets was CU5,000, the actual return on plan assets was CU4,000, the current service cost was CU12,000 and Whites contributions paid into the plan were CU7,500. What is the net expense to be recognised in profit or loss for the year ended 31 December 20X7, according to IAS19 Employee benefits? A CU8,000 B CU3,500 C CU7,000 D CU2,500 12. The Wheat Company has a 12-month accounting period ending 31 December. On 1 April 20X8 it introduced a new contractual bonus scheme covering the year to 31 March each year. It is reasonably anticipated that the bonuses for the year to 31 March 20X9 will amount to CU9,000. According to IAS19 Employee benefits, what liability for bonuses should be recorded at 31 December 20X8? A CU2,250 B Nil C CU6,750 D CU9,000