Question 6
ICAN
•
2025
•
CORPORATE REPORTING
•
mixed
Case Stimulus
Share-based payment occurs when an entity purchases good or services from another party such as, a supplier or employee and rather than pay directly in cash, the transactions are settled by issuing shares, share options or future cash amount linked to the value of the shares.
Requirements
(
a
)
Discuss briefly THREE types of share-based payment transactions recognised under IFRS 2.
(
b
)
Adimula Plc is a company established by a group of Information Technology (IT) experts based in Lagos with offices in various computer villages across the six geo-political zones of the country. The company has a special development programme for its young employees, which involves sending them to Japan on regular basis to acquire knowledge in Artificial Intelligence (AI) as well as internet of things (IOT). However, because of shortage of I.T experts with specialisation in AI in the country, the multinational companies operating in Nigeria frequently poaches the staff of Adimula Plc, after they had been trained by the company. The board of directors of Adimula Plc decided to introduce a staff incentive scheme to prevent losing employee to the multinational companies.
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About This Question
This is
Ican
2025
Corporate Reporting
Question 6.
It is one of the
mixed
questions from the
2025
Ican
Corporate Reporting
examination.