Problem 25-3 (IFRS)Norway Company granted 200 share appreciation rights toeach of the 500 employees on January 1, 2020.The rights are due to vest on December 31, 2023 withpayment being made on December 31, 2023 and expire. onDecember 31, 2024. Only 80% of the awards vested.Share priceJanuary 1, 2020 (Predetermined price)December 31, 2020, 2021 and 2022December 31, 2023December 31, 2024150180210190The share appreciation rights were exercised on December31, 2024.Required:Prepare journal entries from 2020 to 2024 in connection withCe share appreciation rights.er

In the question, Share Appreciation rights are granted on January 1, 2020 and it will vest to the…

Answered: Problem 25-3 (IFRS) Norway Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4:33 Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 400,000 executive stock options permitting executives to buy 400,000 shares of Pastner stock for $30 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2024 (graded vesting). Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award as given below. Vesting Date Amount Vesting December 31, 2024 25% December 31, 2025 25% December 31, 2026 S December 31, 2027 25% 25% Assume Pastner measures the fair value of all options on January 1, 2024, to be $6.60 per option using a single weighted-average expected life of the options assumption. Required: 1. Determine the compensation expense related to the options to be recorded each year 2024-2027, assuming…
EXERCISE 4 On January 1, 2020, Cherry Red Company issued 10,000 share options for the purchase of P 100 par value ordinary share at a strike price of P 120 per share, to its key employees. The share options vest anytime once the share price reached P 200, up to December 31,2022. It is expected that the share price of the company would reach P 200 on December 31,2022. The options are exercisable until the end 2023. Based on the pricing model used by the company, the fair value of the share option on January 1,2020 is P 20. REQUIRED: a) Assume that the market price of the company's share reached P 200 in December 2021 and share options were exercised in 2022. Prepare entries for years 2020 through 2022. b.) Assume that the market price of the company's share reached P 200 in December 2022. Eighty percent of the options were exercised in 2023 and the remainder lapsed. Prepare entries for years 2020 through 2023. c.) How will the entries differ if the company's share reached a market price…
L 30
The extract balance sheet of a company showed the following: 2020 2021 Debentures 10% Share capital £1 each £400,000 £500,000 £750,000 £1,250,000 During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares. In addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinary shares of £1 each was made at a premium of £0.50 per share. The cash flow from financing activities is: Select one answer: O £200,000 O £500,000 O £400,000 O £300,000
Problem 16-03 Novak Company adopted a stock-option plan on November 30, 2019, that provided that 74,400 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $10 a share. The market price was $12 a share on November 30, 2020.On January 2, 2020, options to purchase 29,800 shares were granted to president Tom Winter—14,200 for services to be rendered in 2020 and 15,600 for services to be rendered in 2021. Also on that date, options to purchase 16,600 shares were granted to vice president Michelle Bennett—8,300 for services to be rendered in 2020 and 8,300 for services to be rendered in 2021. The market price of the stock was $15 a share on January 2, 2020. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option.In 2021, neither the president nor the vice president exercised their options because…
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1. On Jan. 1, 20x1, Road Co. granted 1,000 share appreciation rights (SARS) to employees with the condition that the employees remain in service over the next three years. Information on the SARS is as follows:e Date No. of SARS expected to vest Fair value of each SAR Jan. 1. 20x1 1,000 20 Dec. 31, 20x1 900 24 Dec. 31, 20x2 800 30 Dec. 31, 20x3 750 32 All of the 750 SARS that vested were exercised on Dec. 31, 20XI. The intrinsic value (which is equal to the cash paid out) is equal to the fair value of the SARS of P32 on Dec. 31, 20x3. Requirement: Provide all the necessary journal entries.
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Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.
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Problem 17-10 Marin, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $15 each $14,400 Rogers Company 860 shares @ $19 each 16,340 Chance Company 480 shares @ $8 each 3,840 Equity investments @ cost 34,580 Fair value adjustment (7,780 ) Equity investments @ fair value $26,800 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Marin, Inc. sold 300 shares of Chance Company for $12 per share. 3. On May 15, Marin, Inc. purchased 110 more shares of Evers Company stock at $16 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $17, Rogers $18, and Chance $7. During 2021, the following transactions took place. 5. On February 1, Marin, Inc. sold the remaining Chance shares for $7 per share. 6. On March 1, Rogers Company paid a $2 per share…

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