CERTYNEX IFRS ACADEMY

An entity discloses the total expense for the period on its share-based payments without distinguishing the part relating to equity-settled transactions. What is the error?

The expense should have been presented directly in equity rather than in profit or loss, since its counterpart is a reserve.

The expense should have been limited to cash-settled transactions, which are the most sensitive to share price movements.

The total expense must separately show the portion arising from equity-settled transactions.

The expense should have been replaced by the number of options granted, the most telling indicator of the effect.