AASB 2 has reduced the discretion that reporting entities have when accounting for options and other share-based payments.

Question

Quizplus · Accepted Answer

AASB 2 provides specific requirements for accounting for share-based payments, including options. The standard has reduced the discretion that reporting entities have in determining the fair value of the payment and the attribution of that value to periods of service. Therefore, the statement is true.

AASB 2 Has Reduced the Discretion That Reporting Entities Have