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

Short-term employee benefits are measured at the undiscounted amount expected to be paid because they are settled within 12 months and discounting would not be material.

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

In a defined contribution plan, the entity's legal or constructive obligation is limited to the amount it agrees to contribute, with no guarantee of future benefits.

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

IFRS for SMEs allows entities to use the projected unit credit method or a simplified method to measure defined benefit obligations.

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

For defined contribution plans, the cost recognized is simply the contribution payable to the fund for the reporting period.

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

Accumulating short-term paid absences are recognized as the employees provide the service that creates the entitlement, not when the leave is taken.

IFRS for SMEs (IFRS for Small and Medium-sized Entities (SMEs)) Practice Test

IFRS for SMEs (IFRS for Small and Medium-sized Entities (SMEs)) Practice Test

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