Under IFRS 2, with respect to cash-settled share-based payments, when an employee has received stock appreciation rights, how is the fair value of those rights measured?
A) Using the consolidation method
B) Using an option pricing model
C) Using the dividend discount approach
D) All of the above

Question

Quizplus · Accepted Answer

The fair value of stock appreciation rights in cash-settled share-based payments should be measured using an option pricing model. This is because stock appreciation rights represent a right to receive the appreciation in the stock price, similar to an option. The consolidation method and dividend discount approach are not appropriate methods for measuring the fair value of stock appreciation rights.

Under IFRS 2, with Respect to Cash-Settled Share-Based Payments, When