ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 376
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 ―withand-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 employee purchased six shares. The
market price on purchase date was $100.
Swing High Inc. will credit Share Premium―Ordinary for:
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