Refer to the illustration below and identify the correct response(s) among the given choices: A, B and C each own 33% of D's voting shares. • A, B and C each have the right to appoint two directors to the board of D. A owns call options that are exercisable at a fixed price at any time and if exercised would give it all of the voting rights in D. • Äs management does not intend to exercise the call options even if B and C do not vote in the same manner as A. The options are in the money at both issue date and reporting date. 33% call 33% call A 33% 33% 33% D The option appears to be in the money but the intention of the management not to exercise will prevail, therefore, the option is not substantive per IFRS #10. The option is considered substantive and the management intention not to exercise will not be considered in assessing the potential rights of A over D. The three (3) investors has joint control over D. The control over D is not vested any of the three (3) investors, therefore, IFRS#10 will not apply.
Refer to the illustration below and identify the correct response(s) among the given choices: A, B and C each own 33% of D's voting shares. • A, B and C each have the right to appoint two directors to the board of D. A owns call options that are exercisable at a fixed price at any time and if exercised would give it all of the voting rights in D. • Äs management does not intend to exercise the call options even if B and C do not vote in the same manner as A. The options are in the money at both issue date and reporting date. 33% call 33% call A 33% 33% 33% D The option appears to be in the money but the intention of the management not to exercise will prevail, therefore, the option is not substantive per IFRS #10. The option is considered substantive and the management intention not to exercise will not be considered in assessing the potential rights of A over D. The three (3) investors has joint control over D. The control over D is not vested any of the three (3) investors, therefore, IFRS#10 will not apply.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![Refer to the illustration below and identify the correct response(s)
among
the
given
choices:
• A, B and C each own 33% of D's voting shares.
• , B and C each have the right to appoint two directors to the board of D.
• A owns call options that are exercisable at a fixed price at any time and if exercised would
give it all of the voting rights in D.
A's management does not intend to exercise the call options even if B and C do not vote in
the same manner as A.
• The options are in the money at both issue date and reporting date.
33% call
33% call
A
33%
33%
33%
The option appears to be in the money but the intention of the management
not to exercise will prevail, therefore, the option is not substantive per IFRS
#10.
The option is considered substantive and the management intention not to
exercise will not be considered in assessing the potential rights of A over D.
The three (3) investors has joint control over D.
The control over D is not vested any of the three (3) investors, therefore,
IFRS#10 will not apply.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86819b3f-1cec-4d49-b0e6-2cf70e7807d9%2F275a1cb6-6cae-4b5c-bac6-8474ac2be1e5%2F2wr4oxr_processed.png&w=3840&q=75)
Transcribed Image Text:Refer to the illustration below and identify the correct response(s)
among
the
given
choices:
• A, B and C each own 33% of D's voting shares.
• , B and C each have the right to appoint two directors to the board of D.
• A owns call options that are exercisable at a fixed price at any time and if exercised would
give it all of the voting rights in D.
A's management does not intend to exercise the call options even if B and C do not vote in
the same manner as A.
• The options are in the money at both issue date and reporting date.
33% call
33% call
A
33%
33%
33%
The option appears to be in the money but the intention of the management
not to exercise will prevail, therefore, the option is not substantive per IFRS
#10.
The option is considered substantive and the management intention not to
exercise will not be considered in assessing the potential rights of A over D.
The three (3) investors has joint control over D.
The control over D is not vested any of the three (3) investors, therefore,
IFRS#10 will not apply.
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