CERTYNEX IFRS ACADEMY

Cobalt SA pays its employees two cash bonuses: bonus X, equal to 4% of the profit for the year, and bonus Y, equal to the rise in Cobalt's share price multiplied by 500. Which treatment is correct?

Bonus X is an employee benefit within IAS 19; bonus Y is a cash-settled transaction within IFRS 2.

Both bonuses fall within IFRS 2, because both are paid in cash to employees of the entity.

Both bonuses fall within IAS 19, because both remunerate services rendered by employees.

Bonus X falls within IFRS 2 and bonus Y within IAS 19, because profit is a performance measure of the entity, an indicator that would be enough to bring the bonus into the standard.