CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 85 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 85
Topic #: 1

Mr. Rodgers is an accountant for JK Pic. He is asked to record a particular share-based payment in the company's accounts and obliges by debiting as an expense the first relevant account and crediting the corresponding double-entry as a liability.

Which type of share-based payment has Mr. Rodgers recorded?

ACash-settled in the future

BCash-settled immediately

CEquity-settled immediately

DEquity-settled in the future

ENeither cash nor equity-settled

Show Suggested Answer

Suggested Answer: A

by Chandra at Apr 26, 2024, 05:05 AM

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Reyes

7 months ago

I don't think it's cash-settled in the future. In my opinion, it's most likely equity-settled immediately.

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Myrtie

7 months ago

But could it be cash-settled in the future? Maybe Mr. Rodgers had a different reason for recording it that way.

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Wilbert

7 months ago

I agree with By crediting a liability account, it seems like an equity-settled payment.

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Kasandra

7 months ago

I think Mr. Rodgers recorded an equity-settled payment.

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Fletcher

8 months ago

So it must be option C.

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Yuonne

8 months ago

I believe you're correct. He debited as an expense and credited as a liability.

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Henriette

8 months ago

I think Mr. Rodgers recorded an equity-settled immediately payment.

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