share-based payment with cash and share alternatives
Q: Using the OPT (Option Pricing Theory) framework explain the pay-off structures of both equityholders…
A: Option Pricing Theory is a theory which assigns the value of the option contract. The primary goal…
Q: Share premium is an income to the company. Select one: True False
A: Solution: Share premium is the amount in excess of par value received by the company on issue of…
Q: If the employee has the choice as to whether the settlement is in cash or by issuance of equity…
A: The question is related to IFRS 2 Share based payment.
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Q: share-based payment
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Q: In a share-based payment with cash and share alternatives, the net effect to the shareholders’…
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Q: he final distribution of cash to shareholders after a company has been sold off or discontinued…
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Q: 5. For cash-settled share based payment transactions, until the liability is settled, the entity is…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
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: A discount given to employees for the purchase of shares is recognized as a/n ____________…
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Q: A share capital entitled to receive dividends in arrears * Choices; Treasury share capital…
A: Treasury share capital are those shares which have been bought back by the company for cancellation.
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Q: What is the clientele effect and how does it impact on dividens policy for the company? If the…
A: The clientele effect explains the theory of a shift in the demand for a company's stock due to…
Q: Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock…
A: OPTION(B) Both statements are correct ESOP is a system under which the employees of a company are…
Q: Which of the following statements are true Select one: a. All the options b. Capital structure…
A: The following statements are true-
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Q: A firm's retained earnings represent: Earnings set aside for a pension plan. b. a. Earnings set…
A: Retained Earnings refers to portion of profit that is ploughed back by entity to meet future growth…
Q: The Issue of share of a company to only investors of our choice is known as;
A: The correct answer is d. Private Placement.
Q: Are the statemnets: both correct, both incorrect, or which one is correct? STATEMENT 1: Share…
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A: Stock Option Plan Basically stock option plan which was taken the initiatives by the management to…
Q: purchase of shares
A: A discount given to employees for the purchase of shares is recognized as a/n ____________…
Q: Which of the following is True for Bonus Issue of Shares? a. It is an offer of new shares in the…
A: the following is True for Bonus Issue of Shares::Bonus shares are issued to the existing…
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A: Definition: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans…
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A: The financial accounting standard board (FASB) issues literature for accounting.
Q: f the employee has the choice as to whether the settlement is in cash or by issuance of equity…
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Q: Choose the letter of the correct answer: 1. In which of the following situations would an investor…
A: Solution Equity method is used to account for an organisation's investment on another entity…
Q: Which of the following is NOT a characteristic of a non-compensatory employee stock option plan…
A: The employee stock option plan is provided to the employees as reward for their working in the…
Q: The excess of original issuance price over the retirement cost is * O Debited to retained earnings O…
A: Treasury stock: It refers to Shares which are bought back by the company from the open market but…
Q: 4. It is the service period over which the employee must render service to be entitled to…
A: IFRS 102 "Share Based Payments" provides guidance for accouting of a share-based payment…
Q: It entitles an employee to receive cash which is equal to the excess of market value of the entity's…
A: It entitles an employee to receive cash which is equal to the excess of market value of the…
Q: Which compensation is generally paid currently? Multiple Choice Salary and bonus. Salary and…
A: Answer:- Compensation meaning:- Compensation is usually a monetary payment made to someone on…
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A: Sole trader refers to an individual entrepreneurship or proprietorship which is run, owned and…
Q: Under IFRS, what is recorded as compensation expense for all employee share-purchase plans? Par…
A: IFRS refers to international financial reporting standards adopted by various business organisation…
Q: Matching Type. Choose the correct answer in the box provided. These are distributions of the…
A: Share Dividend = These are distributions of the earnings of the corporation in the form of the…
Q: mitigate conflicts of interest between managers and shareholders
A: In case of, Company A - Managers get a fixed cash salary. They will work for the salary like an…
Q: Question The final distribution of cash to shareholders after a company has been sold off or…
A: Discontinued operations: It can be defined as the shut down of the company’s core operations.
Q: An effect of a bonus issue to all shareholders is to: increase the total amount of…
A: Bonus issue to shareholders means when shareholders are issued bonus shares with their current…
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: A stock option plan may or may not be intended to compensate employees for their work. The…
A: Definition: Stock options: Stock options are the stock-based compensation plans provided in the…
Q: Matching Type. Choose the correct answer in the box provided. 4. It is the service period over…
A: A legal phrase for giving or earning a claim to a current or prospective payment, asset, or gain is…
In a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the cash alternative is
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- In a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the cash alternative is A.the balance of the accrued salaries payable B.the total subscription price C.zero D.the balance of the share options outstandingIn a share-based payment with cash and share alternatives, the net effect to the shareholders’ equity if the employee chooses the share alternative is A.the total subscription price B.the balance of the share options outstanding C.the balance of the accrued salaries payable D.zeroA discount given to employees for the purchase of shares is recognized as a/n ____________ compensation A.asset-settled lB.iability-settled C.cash-settled D.equity-settled
- A share-based payment transaction with cash alternative whereby the right of choice of settlement is given to the employee is accounted for as A.partly cash-settled and equity-settled B. equity-settled C. either cash-settled or equity-settled, but not both D. cash-settled17. Under IFRS, what is recorded as compensation expense for all employee share-purchase plans? Par value of shares Amount paid by employees Amount of discount Amount transferred to share premiumIf the employee has the choice as to whether the settlement is in cash or by issuance of equity securities, the share-based payment is accounted as A. A financial liability B. Compound financial instrument C. An equity instrument D. Either equity or financial liability but not both
- When a share-based payment transaction is with an employee and others providing similar services, the goods or services received are measured at thea. fair value of the equity instrument issuedb. intrinsic value a. a or b at the option of the entity b. b c. a d. a if determinable, otherwise, b 2. If there are no vesting conditions, the fair value of employee share options is recognized as expense, and an increase in a. equity at grant date b. liability over the vesting period c. liability at grant date d. equity over the vesting period 3. If there is a vesting period, the fair value of employee share appreciation rights is recognized as expense and an increase in a. liability at grant date b. equity at grant date c. liability over the vesting period d. equity over the vesting periodWhich of the following is True for Bonus Issue of Shares? a. It is an offer of new shares in the company and it will be distributed to the public for subscription. b. It is an offer of new shares in the company and it will be distributed to the board of directors c. It is an offer of new shares and it will be distributed to the existing shareholder at free of cost. d. It is not an offer and it will be distributed to the existing shareholder as per the market valueMatching Type. Choose the correct answer in the box provided. It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *
- According 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 correctMatching Type. Choose the correct answer in the box provided. These are distributions of the earnings of the corporation in the form of the corporation's own shares. * It is the procedure of restating assets, liabilities and share capital balances at its fair value for the purpose of eliminating deficit. * Share option is the best example of this kind of share-based compensation plan. * The date the liability for dividends must be recognized *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.