Defined by IFRS 2 as the difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. *
Q: Which feature of preference share makes it more of a liability than an equity account? MC5 Callable…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Do federal securities laws apply to restricted stock, and what is their effect?
A: The restricted stocks or securities whose ownership cannot be transferred because these are…
Q: Which statement is incorrect? a. Shares, issued in exchange for the settlement of a liability, are…
A: Shares are defined as the securities which make the holder, the owner of the corporation. An…
Q: A share lending agreement
A: Agreement can be defined as the mutual consent between two or more parties upon the some case or to…
Q: Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall O be…
A: The share options will be exercisable after vesting period.
Q: 1.Discuss why might a director argue reliance as a defence to a breach of duty and care?2.Explain…
A: Share helps in representing the unit of an equity ownership in corporation. Shareholders used to…
Q: Which statement is incorrect? * Shares, issued in exchange for the settlement of a…
A: Earnings per share (EPS) refers to the monetary value of common stock's per outstanding share…
Q: Which of the following statement about a rights issue is correct? a. The share price can be…
A: Investors are eligible to purchase additional new shares in the company at a discounted price is…
Q: In an "equity swap," where a liability is settled through the issuance of equity securities, the…
A: As per IFRS 9, Any business which wants to pay off financial liability by issuing equity, the…
Q: 1. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options? A. Fair…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: GW Underwriters retains the difference between its buying price and its offering price on new…
A: Underwriters are large financial institutions such as investment banks, insurance companies, banks,…
Q: elated to a change in market conditions B. It can be changed to reflect the rise or fall in the…
A: International Accounting Standards Board defines the cash value to be an amount that an account will…
Q: Explain the way contingently issuable shares are incorporated in the calculation of EPS.
A: Earnings per cash (EPS): The amount available as earnings for each of the common shares…
Q: Upon exercising share options, the resulting increase in the additional paid-in capital would be…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Discuss the following statement. Even when shares are sold at a discount, equity rights issues are…
A: Private placement is a way when a company issues share to some pre selected investors before the IPO…
Q: Explain the accounting for the issuance of: a. Par value share b. No-par value share
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: over subscription of shares will be dealt with
A: Over subscription of shares occurs when more applications are received than number of shares…
Q: rding to AASB 132 Financial Instruments: Presentation, which of the following items would be…
A: As per AASB 132 – Financial Instruments: Presentation Financial liability is a contract that: gives…
Q: Question 10 Which of the following features of preference shares makes the security more like debt…
A: Equity financing and debt financing are two common financing options which are used by the companies…
Q: The measurement required by IFRS 2 for share option in an is the * O equity-settled share-based…
A: Under IFRS 2 Share-Based Payment, equity-settled- share options are measured using fair value.
Q: The major difference between a convertible debt and share warrants is that upon exercise of the…
A: A share warrant is an certificate/deed issued by company to a person which entitiles them shares or…
Q: How are shares issued at full market value treated differently from rights issues? Explain why it…
A: Destitute organizations will move to rights problems to fund-raise once they actually would like it.…
Q: Are the statemnets: both correct, both incorrect, or which one is correct? STATEMENT 1: Share…
A: Shares options are offered to the employees of the organization on fulfilling the vesting condition.…
Q: In general, the accounting for stock option plans and other share-based payment plans must reflect…
A: Stock Option Plan Basically stock option plan which was taken the initiatives by the management to…
Q: Determine if this shall result in recognition of liabilities 7. declaration of share dividends on…
A: The share dividend is a method of capitalizing on retained earnings. Generally, the large share…
Q: 2. The following are the common sources of share premium, except Group of answer choices a. Excess…
A: Share Premium is the amount received that is in excess of the par value of the stock. Sometimes it…
Q: Compensation expense must be adjusted during the service period to reflect changes in the fair value…
A: Compensation costs are the costs that an employer must repay to an employee as a benefit when the…
Q: Stock appreciation right would normally be settled through
A: Second option is wrong because stock appreciation right is not settled through issue of share…
Q: Which among the following statement is correct? Statement - 1: Pro-rata allotment is made in case of…
A: The question is multiple choice question Required Choose the Correct Option.
Q: Under PFRS9, investment in equity securities not held for trading are classified as: * a. FVPL b.…
A: Investment in equity securities is the current or non-current investment made by the firm in the…
Q: Define Restricted Stock Awards.
A:
Q: An entity need not disclose... a. A description of the nature and purpose of each reserve within…
A: This question deals with the which things entity does not needs to disclose. As per para 79 of the…
Q: With regard to contracts that can be settled in either cash or shares IFRS requires
A: GAAP and IFRS are two accounting boards that ensure accounting rules, principles, standards are duly…
Q: Both trading securities and available - for - sale securities are reported at their fair values…
A: Trading securities: Companies purchase bonds , shares and sell them with the motive of profit with…
Q: The conversion of preference shares into ordinary shares requires that any excess of the par value…
A: Preference share:- It is the type of share which is having preferential rights over common stock,…
Q: The equity component of a compound financial instrument is determined A. by allocating the issue…
A: Equity is the component of the shareholders' equity that includes only the portion of ownership in…
Q: State two effects of Forfeiture of shares.
A: Forfeiture of shares: Forfeiture of share means terminating the shares of the stockholder for…
Q: Which of the following differs in GAAP and IFRS?
A: IFRS and GAAP are two accounting standard board that ensure accounting rules , standard,…
Q: Which feature of preference shares would most likely be opposed by ordinary shareholders? A.…
A: There are two types of equity shares in a firm's capital structure, i.e., ordinary shares and…
Q: Which of the following features of preference shares makes the security more like debt than an…
A: Types of shares: Equity shares Preference shares Differential voting rights shares
Q: Answer the following questions correctly. 1. What is the treatment of a delinquent subscription?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Under PFRS9, investment in equity securities not held for trading are classified as: A. FVOCI B.…
A: Entity irrevocably elects at initial recognition to recognize only dividend income with no recycling…
Q: [S1] By executing a rights offering, we acknowledge the preemptive right of current ordinary…
A: Rights offering or rights issue means a group of rights is offered to existing or current…
Q: Which statement is incorrect? * a. Shares, issued in exchange for the settlement of a liability,…
A: Earnings per share (EPS) refers to the net amount of earnings made by a business entity as a…
15
Step by step
Solved in 2 steps
- 1. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options? A. Fair value at the date of grant. B. Fair value at each reporting date. C. Expected fair value at the date pf exercise. D. Intrinsic value at each reporting date. 2. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall A. be credited to expense during the period the options lapse. B. be credited to income during the period that the options lapse C. remain in equity. D. be converted into a liability. 3. When should the compensation expense be recorded as a result of share options granted by the enterprise to its employees?A. During the year of grant B. During the year that the options ultimately vest C. During the years when services are required to be rendered by the employees D. During the year when the option first becomes exercisableAccording to IFRS, once the total compensation is measured at the date of grant A. It can be changed in future periods related to a change in market conditions B. It can be changed to reflect the rise or fall in the market price of the company's ordinary shares C. A company is permitted to adjust tge number of share options expected to the actual number of instruments vested D. All of the choices are correctUnder U.S. GAAP, ________ preferred shares are classified as a liability. Group of answer choices mandatorily redeemable convertible callable non-mandatorily redeemable
- 2. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall A. be credited to expense during the period the options lapse. B. be credited to income during the period that the options lapse C. remain in equity. D. be converted into a liability.Which statement is incorrect? a. Shares, issued in exchange for the settlement of a liability, are included in EPS calculation from the settlement date. b. Shares, that will be issued upon the conversion of a mandatorily convertible instrument, are included in the calculation of basic EPS from the date the contract is entered into. c. Contingently-issuable shares are treated as outstanding, and are included in the calculation of basic EPS from the date when all necessary conditions are satisfied. d. none of the above18. 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 statement is true regarding the accounting treatment for convertible preferred shares under IFRS? Question 21 options: a) Convertible preferred shares are initially measured at the fair value of the cash or other asset received. b) At conversion, a gain or loss is recognized on the difference between the carrying value of the equity portion of the shares and the fair value. c) Convertible preferred shares are subsequently measured at fair value. d) The liability and equity elements of convertible preferred shares must be presented separately on the statement of financial position.Which statement is incorrect? * Shares, issued in exchange for the settlement of a liability, are included in EPS calculation from the settlement date. Shares, that will be issued upon the conversion of a mandatorily convertible instrument, are included in the calculation of basic EPS from the date the contract is entered into. Contingently-issuable shares are treated as outstanding, and are included in the calculation of basic EPS from the date when all necessary conditions are satisfied. none of the aboveAll 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.
- Are the statemnets: both correct, both incorrect, or which one is correct?STATEMENT 1: Share options are additional compensation on the part of officers and employees. STATEMENT 2: The intrinsic value of share options is equal to carrying amount over the option price.16. With regard to contracts that can be settled in either cash or shares IFRS requires that share settlement must be used. IFRS gives companies a choice of either cash or shares. GAAP requires that share settlement must be used. the FASB project proposes that the IASB adopt the GAAP approach, requiring that share settlement must be used.Which of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issue