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