In an "equity swap," where a liability is settled through the issuance of equity securities, a. no gain or loss is recognized b. any apparent gain or loss is recognized in equity as an addition to share premium c. gain or loss is recognized as the difference between the measurement amount of the equity securities issued and the carrying amount of the liability derecognized. d. a and b
In an "equity swap," where a liability is settled through the issuance of equity securities, a. no gain or loss is recognized b. any apparent gain or loss is recognized in equity as an addition to share premium c. gain or loss is recognized as the difference between the measurement amount of the equity securities issued and the carrying amount of the liability derecognized. d. a and b
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 5MC
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In an "equity swap," where a liability is settled through the issuance of equity securities,
a. no gain or loss is recognized
b. any apparent gain or loss is recognized in equity as an addition to share premium
c. gain or loss is recognized as the difference between the measurement amount of the equity securities issued and the carrying amount of the liability derecognized.
d. a and b
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