Reference no: EM132531919

Question 1: An entity granted share options to a director on the condition that the market price of the related shares increases by at least 12% each year over the next three years. At the end of year three, this target was not met. Explain how the entity should account for this share-based payment in accordance with IFRS 2. Journal entries are not required.

Question 2: An entity has 180 employees who each earn a gross wage of $200 per day. The entity provides 5 days of paid non-accumulating sick leave for each employee per annum. During the year, 100 days of paid sick leave and 20 days of unpaid sick leave were taken. Staff turnover is negligible. Calculate the employee benefit expense for sick leave during the year and the amount that should be recognised as a liability, if any, for sick leave at the end of the year, in accordance with IAS 19. Journal entries are not required.