Cima F2 Exam Question No 43

Question No 43:

Explain how the recognition and measurement of a share-based payment would differ if it was to be settled in cash rather than in equity, in accordance with IFRS 2 Share-based Payments?

Share-based payments that are to be settled in cash would be credited instead to liabilities in the statement of financial position and the liability would be remeasured using the fair value of the shares at each year-end date until the end of the vesting period.