If 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 * Compound financial instrument Either equity or financial liability but not both A financial liability An equity instrument
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- If share-based payment transaction provides that the employees have the right to choose the settlement whether in cash or shares, the entity is deemed to have issued: Equity instrument Either an equity/liability instrument Liability instrument Compound financial instrumentWhich of the following statements is TRUE regarding the equity method? A. The equity method is used for reporting gains or losses for non-strategic investments. B. The investor's share of the associate's dividends declared is reported as revenue. C. The investor's investment in the associate changes in direct relation to the changes taking place in the associate's equity accounts. D. The equity method reports unrealized gains and losses on revaluations to fair value in net income.For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
- For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl ected in shareholders’ equity? B . Th ey fl ow through income into retained earnings.Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.Which one or more of the following would you report as a liability on a statement of financial position: Redeemable Preference Shares, retained earnings, Dividend declared , Loan Notes.
- 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-settledWhen an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as A deduction from the investor’s share of the investee’s profits. Dividend income. A deduction from the stockholders’ equity account, Dividends to Stockholders. A deduction from the investment account. (AICPA adapted)Share dividends distributable is included in the statement of financial position O As a current liability O As a noncurrent liability O As an adjunct account to share capital As a contra-account to share capital
- 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 A.the total subscription price B.the balance of the share options outstanding C.the balance of the accrued salaries payable D.zeroWhen an investor uses the equity method to account for investments in common stock, cash dividend received by the investor from the investee should be recorded as _____. A. A deduction from the investment account. B. A deduction from the stockholders' equity account, dividends to stockholders. C. Dividend income. D. A deduction from the investor's share of the investor's profits.For 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 equity