Leases, Provisions, and Employee Benefits Flashcards

Under IAS 19, short-term employee benefits (e.g., wages, paid annual leave) are measured:

Answer: At the undiscounted amount expected to be paid

Short-term benefits are not discounted because they are expected to be settled within 12 months.

Under IAS 19, which component of defined benefit cost is recognised in profit or loss?

Answer: Current service cost and net interest cost

Service cost (including past service cost) and net interest cost are recognised in profit or loss under IAS 19.

Under IFRS 2, share-based payment transactions where the entity receives goods or services are measured at:

Answer: The fair value of the goods or services received, or the fair value of the equity instruments if indirectly measured

IFRS 2 measures share-based transactions at the fair value of goods/services, or equity instruments if that can't be estimated.

Under IFRS 2, for equity-settled share-based payment transactions with employees, the expense is recognised:

Answer: Over the vesting period based on fair value at grant date

IFRS 2 requires the grant date fair value to be spread over the vesting period.

Under IAS 37, when discounting a provision, the discount rate used should be:

Answer: A pre-tax rate reflecting current market assessments of the time value of money and specific risks

IAS 37 specifies a pre-tax market-based discount rate that reflects risks specific to the liability.

Under IAS 19, termination benefits are recognised as a liability and expense when:

Answer: The entity can no longer withdraw the offer of those benefits

Termination benefits are recognised at the earlier of when the entity cannot withdraw the offer or when it recognises restructuring costs.