Under IFRS 2, with respect to choice-of-settlement share-based payments, if it is the entity that has the right to choose between equity settlement and cash settlement, when must the entity choose the cash settlement?
A. if the supplier provides services
B. if the supplier provides goods
C. if the entity has a present obligation to settle in cash
D. The entity always has the option to choose either method.
Answer:C
Under IFRS 2, with respect to choice-of-settlement share-based payments, if it is the entity that has the right to choose between equity settlement and cash settlement, when must the entity choose the cash settlement?
A. if the supplier provides services B. if the supplier provides goods C. if the entity has a present obligation to settle in cash D. The entity always has the option to choose either method.