In an equity-settled transaction, if the total compensation changes in the subsequent period, the change is A. Not accounted B. Deferred through the vesting period C. Accounted prospectively D. Accounted retrospectively
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In an equity-settled transaction, if the total compensation changes in the subsequent period, the change is
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- Appropriations of retained earnings are proper a. When required by contractual agreements b. All of the other choices c. When BOD voluntarily designates a portion of retained earnings for future expenses or contingencies d. When required by lawWhen the required balance of the loss allowance decreases, a. the entity recognizes gain. b. the entity recognizes loss. c. the entity recognizes unearned interest to be amortized over the remaining term of the instrument. d. the entity recognizes a deferred charge to be amortized over the remaining term of the instrument.Appropriations of retained earnings are proper When BOD voluntarily designates a portion of retained earnings for future expenses or contingencies All of the other choices When required by law When required by contractual agreements
- Which of the following is a characteristic of a current liability but not a long-term liability? a. Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities. b. Unavoidable obligation. c. Transaction or other event creating the liability has already occurred. d. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.Which of the following would be classified as non-current liability? *a. Unearned revenueb. Mandatory redeemable preference sharesc. The current maturing portion of long-term debtd. Accrued salaries payable to managementif the unearned interest is credited in the adjusting entry, which of teh following will be affected? a. nominal accountb. capital accountc. liability accountd. asset account
- The accrual of a contingent liability and the related loss should be recorded when the a. Loss resulting from a future event may be material in relation to income. b. Future event that gives rise to the liability is unusual in nature and nonrecurring. c. Amount of the loss resulting from the event is reasonably estimated and the occurrence of the loss is probable. d. Event that gives rise to the liability is unusual and its occurrence is probable.A change in the liability for warranty costs requires a. presenting prior-period financial statements as previously reported. b. presenting the effect of pro forma data on income and earnings per share for all prior periods presented. c. reporting an adjustment to the beginning retained earnings balance in the statement of retained earnings. d. reporting current and future financial statements on the new basis.Investments in equity securities are adjusted to fair value at the end of the period. This adjustment will affect the income statement, statement of comprehensive income, statement of retained earnings and the balance sheet. (True/False) In accounting for pension plans, the projected benefit obligation, service cost and pension plan assets are all valued at present value. (True/False)
- How should (i) a change in calculating the provision for doubtful accounts, and (ii) change in subsequent measurement of investment property from cost to fair value, accounted for? * a. (i) Currently and prospectively; (ii) Currently and prospectively b. (i) Retrospectively; (ii) Retrospectively c. (i) Retrospectively; (ii) Currently and prospectively d. (i) Currently and prospectively; (ii) RetrospectivelyIn the final settlement, of the contingent consideration, which of the following statements is valid?I. If the contingent consideration is classified as equity, the amount shall be measured upon settlement and recognized as part of profit and loss.II. If the contingent consideration is classified as financial liability, the amount shall be measured at fair value upon settlement with any gain or loss recognized as part of profit and loss. a. I only b. Both I and II c. II only d. Neither I nor IIIf the equity-settled transaction (share option) is granted early during the vesting period, the compensation that wold have been recognized in the future shall be A. Recognized in other comprehensive income B. Deferred until the exercise of the option C. Recognized in profit or loss immediately D. Shall be offset against the value of the equity granted