CERTYNEX IFRS ACADEMY

Zéphyr SA examines two contracts: (1) the grant to its employees of options on its own shares in exchange for their services; (2) a contract to buy copper, a non-financial item, that can be settled net in cash and is not held for its own supply requirements. Which standard governs each?

Contract (1) falls within IAS 32, because it creates an equity instrument; contract (2) falls within IFRS 2.

Contract (1) falls within IFRS 2; contract (2) stays within the scope of IAS 32.

Both contracts fall within IFRS 2, because they can be settled in shares or in cash.

Both contracts fall within IAS 32, because their settlement involves financial instruments.