Under IFRS 2, Share-based Payment, what approach is used to account for the transaction?
A) Comparable transaction approach
B) Fair value approach
C) Market approach
D) Notional value approach

Question

Quizplus · Accepted Answer

Under IFRS 2, Share-based Payment, the fair value approach is used to account for the transaction. This means that the fair value of the equity instruments granted should be measured at grant date, and the value should be recognized as an expense over the vesting period. This approach provides a more accurate reflection of the cost of the share-based payment transaction.

Under IFRS 2, Share-Based Payment, What Approach Is Used to Account