ACC 304 All Assignments ACC 304 All Assignments | Page 65

financial statements. Below is selected financial information for the fiscal year ended June 30, 2014. 9) Under IFRS, how are convertible debt recorded? 10) Under IFRS, what is recorded as compensation expense for all employee share-purchase plans? 11) Which of the following differs in GAAP and IFRS? 12) Florence Inc. issued 8,000, 5-year convertible bonds of $2,000 each for $4,000,000 at the beginning of 2012. The bonds have a stated rate of interest of 9% and interest is payable annually. Each bond can be convertible into 100 shares with a par value of $10. The market rate of similar nonconvertible debt is 10%. Determine the fair value of equity component using the “with-and- without” method. 13) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each