Which of the following items are considered cash-settled share-based payment transactions within the scope of AASB 2?
A) An entity grants 200 share options to all employees.
B) An entity grants 200 share options to all employees but requires employees to work at least 3 years.
C) An entity acquires a piece of equipment from another entity in exchange for shares of the entity.
D) An entity issues share appreciation rights to its employees.

Question

Quizplus · Accepted Answer

Share appreciation rights are considered as cash-settled share-based payment transactions within the scope of AASB 2. In such transactions, the employees receive cash or another asset equivalent to the increase in the value of the entity's shares between the grant date and the settlement date. In contrast, A and B are considered equity-settled share-based payment transactions as the employees receive equity instruments of the entity. C is not a share-based payment transaction.

Which of the Following Items Are Considered Cash-Settled Share-Based Payment