When should the compensation expense be recorded as result of share options granted by the enterprise to its employees? * O During the year when the option first becomes exercisable O During the year that the options ultimately vest O During the year of grant O During the years when services are required to be rendered by the employees

When should the compensation expense be recorded as result of share options granted by the enterprise to its employees? * O During the year when the option first becomes exercisable O During the year that the options ultimately vest O During the year of grant O During the years when services are required to be rendered by the employees

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 3C

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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 exercisable
if there are no vesting conditions, the fair value of employee share options is recognized as expense and an increase in __________. A. equity over the vesting period B. liability at grant date C. equity at grant date D. liability over the vesting period
If there are no vesting conditions, the fair value of employee share options is recognized as expense and an increase in: liability over the vesting period equity at grant date equity over the vesting period liability at grant date
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 period
In what circumstances is compensation expense immediately recognized under a share option plan? in circumstances when the options are granted for prior service and the options are immediately exercisable in circumstances when the options are exercisable within two years for services rendered over the next two years in all circumstances in no circumstances is compensation expense immediately recognized
If there is a vesting period, the fair value of employee share appreciation rights is recognized as expense and an increase in __________. liability over the vesting period equity at grant date equity over the vesting period liability at grant date
Which statement is incorrect regarding equity-settled share-based payment transactions? A. the issuance of shares to employees with say, a two year vesting period is considered to relate to services over the vesting period. B. the issuance of shares or rights to shares requires an increase in a component of equity C. the fair value of a share-based payment transaction is determined at the date of exercise. D. the issuance of fully vested shares, or rights to shares, is presumed to relate to past service, requiring the full amount of the grant-date fair value to be expensed immediately. Provided the specified vesting conditions, if any, are met, share-based payment arrangement is an agreement between the entity and another party that entities the other party to receive A. equity instruments of the entity or another group entity B. none of the choices C. receives goods or services from the supplier of those goods or services in a…
1. When share options granted vest base on a service condition a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Total fair value of the share options granted = Total compensation expense recognized over the vesting period d. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year 2. When share appreciation rights are granted to employees a. expense, liability and equity accounts are recognize b. expense and equity accounts are recognize c. expense and liability accounts are recognize d. liability and equity account are recognized 3. Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive a. Cash or…
What is a shareholder's basis in S corporation stock received for services rendered? - The average fair market value of the S corporation's stock during the time that the services were rendered. - The fair market value of the S corporation's stock at the time of transfer. - The fair market value of the services rendered, as determined by the Bureau of Labor Statistics. - The value of the services rendered, as determined by what the shareholder normally changes.
If share-based options granted to employees under a share-based payment transaction vest immediately a.The entity should defer recognition of the services rendered by the employeesb.The entity should record a liabilityc.The employees are unconditionally entitled to the share-based paymentsd.The entity should account for the services when these are rendered by the employees during the vesting period
17. 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 premium
A stock option plan may or may not be intended to compensate employees for their work. The compensation expense for compensatory stock option plans should be recognized in the periods the a. employees become eligible to exercise the options. b. employees perform services. c. stock is issued. d. options are granted.