A share-based payment transaction may be - any of the three other choices - equity-settled - cash-settled - choice between equity-settled and cash-settled

Q: Q.1. Explain what can happen if a share issue is ‘underwritten’ and the effect that underwriting can…

A: Underwriting of shares means when some merchant, institution or bank is appointed to subscribe the…

Q: A market in which all financial assets can be sold to someone other than the original issuer is…

A: A primary market is a market where securities are first issued by its original issuer/ creator. Once…

Q: Identify and explain three different dividend policies.

A: Companies pay dividend to their shareholders. Each company has a policy to determine dividend…

Q: Which of the following costs of a business combination can be deducted from the value assigned to…

A: Solution Paid in capital is the payment received from the investor in exchange of an entity's stock…

Q: What are the three (3) components that the return from shares can be broken down into?

A: The capital of a corporation consists of units of shares that are used by the corporation to acquire…

Q: In case of payment of convertible bonds, the balance of Share Premium - Conversion Privilege account…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Which of these entities has more stable and secured investment? a. Common stockholder b. Preferred…

A: Investment is defined as the item or asset which is acquired with the objective of generating the…

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: 2.5 With the aid of examples, highlight the differences between the following terms: Authorized…

A: SOLUTION-   SHARE CAPITAL   IS THE MONEY  A COMPANY RAISES BY ISSUING SHARES OF COMMON OR PREFERRED…

Q: discuss the respective theorists, their arguments against and for dividend policies

A: Firm issued various securities to arrange the fund for the business and pay return on it. Dividend…

Q: Discuss the differences between common shares and preferred shares.

A: While both common shares and preferred shares are part of the share capital of a company they are…

Q: when must the entity choose the cash settlement?

A: A company or any business requires the goods or anything else for which the payment have to made to…

Q: The Issue of share of a company to only investors of our choice is known as;

A: The correct answer is d. Private Placement.

Q: For upstream sales the total amount of unrealized gains and losses are allocated between controlling…

A: Following is the answer to the given question

Q: Define Contingently Issuable Shares.

A:

Q: .Intrinsic valuation and relative valuation

A: Preference shares refer to the shares that enable the shareholders for receiving dividend that is…

Q: In your opinion, what is/are the problem/s with the Book Value per Share approach and the…

A: Book value per share is the ratio of dividend available for equity shareholders and number of…

Q: Which of the following sequences of dividend-related dates is in the correct chronological order…

A: Correct chronology of Dividend Related dates   1. Declaration: It is the date on Which Company…

Q: . Share-based payments may be classified as liabilities.

A: Given statement is share based payments may be classified as liabilities.

Q: Which of the following would affect the cash flows? Asset Swap Exercise of Conversion Privilege…

A: Asset Swap will result in swapping of assets and hence there will be no effect on cash Conversion…

Q: Preference Share Capital

A: Capital is the funds invested in the business to earn revenue.

Q: Distinguished between reorganization and reduction of share capital.

A: Reorganization of Capital: The act of changing the capital structure of a company by combining or…

Q: For downstream sales the total amount of unrealized gains and losses are allocated between…

A: Downstream sales is the sales made by parent company to subsidiary company. Parent company is the…

Q: An important difference between interest and dividends is that:

A: Capital structure defines the proportion or combination of various sources of capital financing such…

Q: 1. Can a Corporate Redemption be treated as a dividend? If so, what is the effect on E&P? Give Code…

A: Dividend refers to the reward which are paid to the shareholders for the investment in the equity of…

Q: Identify and explain the various share capital transactions subsequent to original issuance.

A: After the original issuance of shares, which normally takes place through an IPO (initial public…