1. Which of the following items are considered share-based payment transactions within the scope of AASB 2? A. Share dividends to employees who are shareholders of the entity. B. Goods acquired from a supplier on credit to be settled in cash. C. Services provided by an employee to be settled in equity instruments. D. Purchase of non-current assets on credit to be settled in cash. 2. AASB 2 requires all share-based payment transactions to be recognised at: A. Grant date. B. Balance date. C. Exercise date. D. Settlement date. 3. In a share-based payment transaction like an option, vesting date is: A. Grant date. B. Expiry date of option. C. Date when all vesting conditions are satisfied. D. Balance date. 4. The class of assets that is to be valued at lower than cost or net realisable value is: A. non-current assets. B. debtors. C. self-generating and regenerating assets. D. inventories. 5. If an asset's 'value in use' exceeds its market value, then: A. an entity should adjust the current carrying amount of the asset to book value. B. it would be expected that the entity would dispose of the asset immediately. C. an impairment loss will need to be recorded. D. it would be expected that the entity would retain the asset. 6. Recoverable amount of an asset is defined in AASB 136 as the higher of its fair value less costs to sell and its value in use. In the case where an asset's carrying amount is less than its recoverable amount, which action is consistent with AASB 136? A. Recognise difference as increase is asset revaluation reserve. B. Recognise difference as impairment loss. C. Recognise difference as gain from reinstatement of asset. D. Leave asset at its carrying amount. 7. Which of the following measurement bases are acceptable for property, plant and equipment? A. Historical cost. B. Revaluation model. C. Fair value model. D. Historical cost and revaluation model. 8. On 1 July 2022 Lancaster Ltd grants 100 share options to each of its 50 employees conditional upon the employee working for the entity for the next 3 years. The entity estimates the fair value of each share option at $13. Based on probability estimates, 25 employees are expected to leave the entity before the options vest. In accordance with AASB 2, how much remuneration expense related to the share option issue should Lancaster Ltd recognise for the year ended 30 June 2023? A. zero B. $10 833 C. $32 500 D. $65 000 9. A finance lease in which the lessor provides the financial resources to acquire an asset and retains ownership while the control of the asset and the risks and benefits of ownership pass to the lessee, may be considered from the perspective of the lessor to be a(n): A. Sales-type lease. B. Operating lease. C. Direct finance lease. D. Executory lease. 10. For a depreciable asset, the amount of depreciation recognised shall be in accordance with AASB 116. The asset shall be: A. Fully depreciated over the shorter of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term. B. Fully depreciated over the shorter of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term. C. Fully depreciated over the longer of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term. D. Fully depreciated over the longer of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term. Question 11 From the perspective of the lessor, finance leases can be further classified into: A. Leases involving agricultural products and direct-finance leases. B. Leases involving manufacturers or dealers and sales and leasebacks. C. Leases involving manufacturers or dealers and direct-finance leases. D. Leases involving land and buildings and direct-finance leases