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ACCA Strategic Professional · Strategic Business Reporting (International) · Share-based payment

Which of the following transactions falls within the scope of IFRS 2?

Issuing shares to a supplier for furniture is within IFRS 2, because goods are received in exchange for equity instruments. Share issues in business combinations, joint venture formations and rights issues to shareholders acting as shareholders are outside its scope.

  1. AIssue of shares by an acquirer to acquire a business in a business combination under IFRS 3
  2. BIssue of shares to a supplier in exchange for office furniture receivedCorrect
  3. CIssue of shares to existing shareholders in a rights issue
  4. DContribution of a business to form a joint venture under IFRS 11

Explanation

IFRS 2 applies when an entity receives goods or services and pays with equity instruments or cash based on its share price. Furniture purchased with shares is such a transaction. Business combinations, joint venture formation and transactions with shareholders in their capacity as shareholders (rights issues) are excluded.

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