Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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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 correct
Under U.S. GAAP, ________ preferred shares are classified as a liability.
Group of answer choices
mandatorily redeemable
convertible
callable
non-mandatorily redeemable
All 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.
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Similar questions
- 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.arrow_forwardGW Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called? Multiple Choice Markup Commission Rights price Spread Offerarrow_forward1. 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 exercisablearrow_forward
- 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 abovearrow_forwardBriefly describe how to determine and record any subsequent increases or decreases in the fair value of a minority passive investment in equity securities.arrow_forwardWhich 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 abovearrow_forward
- See the attached image for information:a. How much is the balance of the Share Capital – Ordinary as of December 31, 2021? (Provide solution)b. How much is the balance of the Share Premium – Ordinary as of December 31, 2021? (Provide solution)c. How much is the balance of the Share Capital – Preference as of December 31, 2021? (Provide solution)arrow_forwardAll of the following components of other comprehensive income are reclassified subsequently to profit or loss, except Group of answer choices A. Unrealized gain on investment in bonds securities measured at fair value through OCI B. Gain from translating financial statements of a foreign operation C. Actuarial gain on projected benefit obligation D. Unrealized gain on futures contract designated of cash flow hedgearrow_forwardFor cash-settled share based payment transactions, until the liability is settled, the entity is required to re-measure the fair value of the liability at each reporting date and at the date of settlement and any changes in fair values are: a. Not recognized b. Included in earnings c. Included in accumulated profits d. Treated as a component of equityarrow_forward
- 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 *arrow_forwardWhich 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 issuearrow_forwardWhat is restricted stock? How do restricted stock awards differ from restricted stock units (RSUs)? Describe how compensation expense is determined and recorded for a restricted stock award plan.arrow_forward
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