In a Share Based Payment Transaction Where the Entity Has

In a share based payment transaction where the entity has settlement choice, which of the following statements is true?

A) the entity must settle in equity unless there is no commercial substance to the transaction.
B) if an entity elects to settle in cash the settlement is accounted for as an expense.
C) where a present obligation does not exist the entity has a choice of classification as an equity or cash settled share based payment transaction.
D) the entity has a present obligation to settle in cash where it has a past practice or stated policy of settling in cash.