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

Which transaction falls outside the scope of IFRS 2?

Shares issued as consideration in a business combination are outside IFRS 2 because IFRS 3 governs them. Share-based payments for services, goods, or cash amounts linked to the entity's share price remain within IFRS 2.

  1. AIssue of shares by an entity as part of the consideration in a business combinationCorrect
  2. BGranting share options to a supplier for consultancy services
  3. CIssue of shares to acquire inventory from a supplier
  4. DCash payment to employees based on the entity's share price

Explanation

IFRS 2 excludes share issues in a business combination, which fall under IFRS 3. Options for consultancy, shares for goods, and cash payments linked to share price are all within IFRS 2 scope.

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