SHARE-BASED PAYMENTS PART 2

1. In a share-based payment with cash and share alternatives, the net effect to the shareholders' equity if the employee chooses the cash alternative is? a. the total subscription price b. zero c. the balance of the share options outstanding d. the balance of the accrued salaries payable 2. In a share-based payment with cash and share alternatives, the net effect to the shareholders' equity if the employee chooses the share alternative is? a. the total subscription price b. zero c. the balance of the accrued salaries payable d. the balance of the share options outstanding 3. A discount given to employees for the purchase of shares is recognized as a/n ______________ compensation. a. asset-settled b. liability-settled c. equity-settled d. cash-settled 4. A share-based payment transaction with cash alternative whereby the right of choice of settlement is retained by the entity is accounted for as? a. equity-settled b. either a or b but not both c. cash-settled d. partly a and partly b 5. Increases in the fair value of unexercised share options after the vesting period shall be? a. treated as change in accounting estimate b. ignored c. directly recognized in profit or loss in full d. treated as a prior period adjustment 6. A share-based payment transaction with cash alternative whereby the right of choice of settlement is given to the employee is accounted for as? a. equity-settled b. either a or b but not both c. cash-settled d. partly a and partly b 7. In what circumstances is compensation expense immediately recognized under a share option plan? * a. in circumstances when the options are exercisable within two years for services rendered over the next two years b. in no circumstances is compensation expense immediately recognized c. in circumstances when the options are granted for prior service and the options are immediately exercisable d. in all circumstances 8. If there are no vesting conditions, the fair value of employee share options is recognized as expense and an increase in a. liability over the vesting period b. equity at grant date c. liability at grant date d. equity over the vesting period

9. An agreement to issue ordinary shares to employees that allows the employees to own a part of the entity's is known as? * a. share subscription plan b. employee share option plan c. share appreciation right d. sharing company plan 10. A share-based payment transaction may be a. equity-settled b. any of the three other choices c. cash-settled d. choice between equity-settled and cash settled 11. If there is a vesting period, the fair value of employee share appreciation rights is recognized as expense and an increase in a. equity at grant date b. liability over the vesting period c. liability at grant date d. equity over the vesting period 12. When a share-based payment transaction is with an employee and others providing similar services, the goods or services received are measured at the: A. fair value of the equity instrument issued B. intrinsic value * a.A b. A if determinable, otherwise, B c.A or B at the option of the entity d.B 13. When share options issued to employees are vested prior to the predetermined vesting date, the entity shall? * a. do nothing b. recognize additional expense for the unamortized balance c. make a transfer among equity components d. recognize a gain for the unamortized balance. 14. When share options issued to employees are exercised, the entity shall? a. recognize a gain for the unamortized balance b. recognize a loss for the unamortized balance c. do nothing d. make a transfer among equity components 15. The intrinsic value of a share option is: a. subscription price less fair value of shares b. subscription price less fair value of option c. fair value of option less subscription price d. fair value of shares less subscription price