What is the major difference between how U.S GAAP and IFRS handle share-based payments?
A)U.S.GAAP rules measure SBP at fair value on the grant date; IFRS records the future option of the SBP right after the announcement
B)U.S.GAAP rules only recognize market shares as payments; IFRS also includes goods or services paid in shares or SBP
C)U.S.GAAP rules apply only to employee SBP; IFRS apply to all SBP,including non-employee SBP
D)U.S.GAAP rules true up for failure to meet service,non-market vesting conditions; IFRS true up for failure to meet market conditions

Question

Quizplus · Accepted Answer

The major difference between how U.S GAAP and IFRS handle share-based payments is that U.S.GAAP rules apply only to employee SBP, whereas IFRS applies to all SBP, including non-employee SBP. Option A is incorrect because both U.S.GAAP and IFRS measure SBP at fair value on the grant date. Option B is incorrect because both U.S.GAAP and IFRS include goods or services paid in shares or SBP. Option D is incorrect because U.S.GAAP true up for failure to meet service, non-market vesting conditions, whereas IFRS true up for failure to meet non-vesting conditions, which may be market or non-market.

What Is the Major Difference Between How U