share-based payment
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: When preference share is cumulative, preferred dividends not declared in a period are a. never paid…
A: Answer: When preference share is cumulative, preferred dividends not declared in a period are…
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: The journal entry to record the declaration of a large bonus issue includes: A. A debit to retained…
A: The Declaration of bonus issue is the declaration of the stock dividend which means the issuance of…
Q: In a share-based payment with cash and share alternatives, the net effect to the shareholders’…
A: Share base payments with cash and share alternatives, This is a compound financial asset which has…
Q: Which one of the following statements apply only to preference shareholders and not to equity…
A: Preference shares and equity shares are two common classes of shares. They have some distinct…
Q: he final distribution of cash to shareholders after a company has been sold off or discontinued…
A: At the time of liquidation of corporation, firstly all non cash assets are sold out, liabilities are…
Q: How is basic EPS different from diluted EPS? When calculating diluted EPS, how does the treasury…
A: EPS stands for earning per share that is used to measure the profitability of a company. It is…
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 ____________…
A: To determine, whether the transaction is to be settled in cash or in equity shares. Equity settled…
Q: a controller argues that when a company issues stock for less than current value, the value of…
A: Dilution refers to reduction in the current shareholding of the existing stockholders due to mainly…
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: share-based payment with cash and share alternatives
A: The accrued salaries payable account will be debited and cash account is to be credited.
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: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…
A: Ordinary share is a common stock which gives ownership of the company.
Q: Share Price can be determined by the cash flows and risk. Assume other things held constant,…
A: Stock Prices are moved based on the various factors affecting the stock such as discounting factors…
Q: When preference shares share with the ordinary shareholders in any profit distributions beyond the…
A: There are two types of shares that are being issued by a company. One is ordinary shares and other…
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…
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: Which one of the following will increase shareholders' equity, all else held constant? Select…
A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…
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 statement is true? a. In brokered markets, buyers and sellers confront…
A: Introduction: The primary market is where the new offerings are issued to the public. The companies…
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…
Q: LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive…
A: Definition: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans…
Q: hich of the following transactions would most likely affect shareholders’ equity? Group of answer…
A: The shareholders' equity is recorded in the statement of financial position of the business i.e.…
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: Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained…
A: The dividend policy is a decision in deciding the exchange between paying dividends and retaining…
Q: When should the compensation expense be recorded as a result of share options granted by the…
A: Compensation expense on share options granted by the enterprise to its employees will be recognise…
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: Explain how “at-the-money” stock options (i.e., options that have no intrinsic value) which are part…
A: At-the-money option: It is a situation where the price of the option is equal to the current price…
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: The benefit enjoyed by a sole trader includes (a) Easy to get loan from financial institutions (b)…
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: If the issuing company has only one class of share capital, a transfer from retained earnings to…
A: , a transfer from retained earnings to contributed capital equal to the market value of the shares…
Q: How would a share split affect the amount of total share capital, total shareholder's equity and…
A: Only effect that share split has is on the components of the common stock. Rest stays unaffected.…
Q: If a preferred stock is of the cumulative type, a. dividends cannot be passed if they are earned.…
A: Preferred stock carry fixed rate of dividends that must be paid each year.
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: The distribution of a dividend that represents a partial return of the original investment made by…
A: Dividend is the disbursement of profit in consideration to the shares purchased by the shareholders.…
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: Which of the following statement is true? ( a. In brokered markets, buyers and sellers confront each…
A: The stock market is a platform where shares/securities are exchanged amount buyers and sellers. The…
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 share 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 cash alternative is the balance of the accrued salaries payable the balance of the share options outstanding zero the total subscription priceA 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 discount given to employees for the purchase of shares is recognized as a/n ____________ compensation. liability-settled cash-settled asset-settled equity-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 premiumA 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-settled
- Which 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 valueIf 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 bothAccording 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 correct
- Matching 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. *Matching 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.
