Under IFRS 2, with respect to choice-of-settlement share-based payments, if the supplier chooses the cash settlement, the entity is deemed to have issued a compound financial instrument consisting of debt and equity. When cash is received, how does the supplier report it?
A. only against the equity portion
B. apportioned between debt and equity based on relative fair market value of each component
C. in current year income
D. only against the debt portion
Answer:D
Under IFRS 2, with respect to choice-of-settlement share-based payments, if the supplier chooses the cash settlement, the entity is deemed to have issued a compound financial instrument consisting of debt and equity. When cash is received, how does the supplier report it?
A. only against the equity portion B. apportioned between debt and equity based on relative fair market value of each component C. in current year income D. only against the debt portion