CERTYNEX IFRS ACADEMY

An employee may choose between cash and shares when the award vests. Which statements are correct? More than one answer is possible.

The employee's choice is analysed as a settlement alternative of the entity, with no separate component to recognise.

The choice given to the counterparty does not make the award a cash-settled transaction for the whole of it.

The entity accounts separately for the goods or services received for each of the two components.

The equity component exists from the time the employee chooses to receive shares.

The liability component corresponds to the employee's right to demand cash.