IFRS for SMEs) IFRS for SMEs Employee Benefits and Share-Based Payment

Question 1

Under IFRS for SMEs, short-term employee benefits that are expected to be settled within 12 months after the reporting period are measured at:

Accepted Answer

Undiscounted amounts

Answer

Present value of expected future payments

Answer

Fair value at reporting date

Answer

Replacement cost

Question 2

Under IFRS for SMEs, a defined contribution plan is one where:

Accepted Answer

The entity pays fixed contributions and has no further obligation

Answer

The entity guarantees a specific retirement benefit

Answer

Benefits are determined by a formula based on years of service

Answer

Contributions vary with company profits

Question 3

How does IFRS for SMEs require an entity to measure the liability for a defined benefit plan?

Accepted Answer

Using the projected unit credit method or a simplified method

Answer

At the amount of contributions paid in the year

Answer

At the fair value of plan assets only

Answer

At the undiscounted total of promised future benefits

Question 4

Under IFRS for SMEs, the cost of a defined contribution pension plan for the period is:

Accepted Answer

The contribution payable for the period

Answer

The change in the present value of the defined benefit obligation

Answer

The actuarial gain or loss for the year

Answer

The expected return on plan assets

Question 5

Under IFRS for SMEs, short-term paid absences such as vacation leave are recognized:

Accepted Answer

As a liability and expense when employees render service that increases their entitlement

Answer

Only when the leave is actually taken

Answer

As a contingent liability

Answer

Only if the absence is contractually required

Question 6

Which of the following is an example of a long-term employee benefit under IFRS for SMEs?

Accepted Answer

Long-term disability benefits payable more than 12 months after the reporting period

Answer

Annual bonuses settled within 12 months

Answer

Health insurance premiums paid monthly

Answer

Weekly wages