To assist users of financial statements an entity must provide the effect of expenses arising from share-based transactions on the entity's profit or loss for the period.

Question

Quizplus · Accepted Answer

According to accounting standards, the effect of expenses arising from share-based transactions must be disclosed in an entity's financial statements to assist users of the statements in understanding the entity's financial performance during the period. This information is typically presented in either the income statement or the notes to the financial statements. Therefore, the statement is true.

To Assist Users of Financial Statements an Entity Must Provide