All of the following are key similarities between GAAP and IFRS with respect to accounting for dilutive securities and EPS except: a. the model for recognizing stock-based compensation. b. the calculation of basic and diluted EPS. c. the accounting for convertible debt. d. the accounting for modifications of share options, when the value increases.

All of the following are key similarities between GAAP and IFRS with respect to accounting for dilutive securities and EPS except: a. the model for recognizing stock-based compensation. b. the calculation of basic and diluted EPS. c. the accounting for convertible debt. d. the accounting for modifications of share options, when the value increases.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter20: Hybrid Financing: Preferred Stock, Warrants, And Convertibles

Section: Chapter Questions

Problem 6Q

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Similar questions

Explain how convertible securities are determined to bepotentially dilutive common shares and how thoseconvertible securities that are not considered to be potentiallydilutive common shares enter into the determinationof earnings per share data.
distinguish between dilutive and antidilutive securities, and describe the implications of each for the earnings per share calculation
Which statement is incorrect? * A. Dilution of EPS is the decrease in EPS when convertible instruments are converted to ordinary shares B. The purpose of diluted EPS is to provide a comparison figure for creditors. C. Dilutive convertible securities must be used in the computation of diluted EPS but not in basic EPS. D. Antidilutive securities should be ignored in all EPS calculations. E. none of the above
Which statement is incorrect? * Dilution of EPS is the decrease in EPS when convertible instruments are converted to ordinary shares The purpose of diluted EPS is to provide a comparison figure for creditors. Dilutive convertible securities must be used in the computation of diluted EPS but not in basic EPS. Antidilutive securities should be ignored in all EPS calculations. none of the above
The treasury stock method is used to incorporate the dilutive effect of stock options, stock warrants, and similar securities. Describe this method as it applies to diluted EPS.
18. Which of the following differs in GAAP and IFRS? Calculation of EPS Model for recognizing stock-based compensation Accounting for convertible debt Modification of a share option
Which of the following does not represent a pair of GAAP/IFRS-comparable terms? a. Additional paid-in capital/Share premium. b. Treasury stock/Repurchase reserve. c. Common stock/Share capital—ordinary. d. Preferred stock/Preference shares.
Which statement is incorrect?A. Dilution of EPS is the decrease in EPS when convertible instruments are converted to ordinary sharesB. The purpose of diluted EPS is to provide a comparison figure for creditors.C. Dilutive convertible securities must be used in the computation of diluted EPS but not in basic EPS.D. Antidilutive securities should be ignored in all EPS calculations.E. none of the above Note: EPS is Earnings Per Share
What are the computational guidelines for determiningwhether a convertible security is to be reported as part ofdiluted earnings per share?
Which of the following statements correctly describe characteristics of preference shares? Group of answer choices A. The required return on preference equity is expected to be less than the required return from ordinary equity. B. None of the other statements are correct C. A participating preference share participates in the interest payments paid to debtholders. D. Preference shares are called “hybrid” securities because they display characteristics of both short-term and long-term debt.