1.Lang Co. issued bonds with detachable ordinary share warrants. Only the bonds had a known fair value. The cash proceeds exceed the fair value of the bonds. This excess is reported as

a.Share PremiumShare Warrants.

b.Share PremiumOrdinary.

c.Bonds Payable.

d.Share PremiumConversion Equity.

2. According to IFRS, a company makes only a memorandum entry when

a.companies give warrants to executives and employees as a form of compensation.

b.companies include warrants to make a security more attractive.

c.companies issue rights to existing shareholders.

d.All of these answer choices are correct.

3. According to IFRS, once the total compensation is measured at the date of grant

a.it can be changed in future periods related to a change in market conditions.

b.it can be changed to reflect the rise or fall in the market price of the company's ordinary shares.

c.a company is permitted to adjust the number of share options expected to the actual number of instruments vested.

d.All of these answer choices are correct.

4. Compensation expense resulting from a compensatory share option plan is generally

a.recognized in the period of exercise.

b.recognized in the period of the grant.

c.allocated to the periods benefited by the employee's required service.

d.allocated over the periods of the employee's service life to retirement.

5. The date on which total compensation expense is computed in a share option plan is the date

a.of grant.

b.of exercise.

c.that the market price coincides with the option price.

d.that the market price exceeds the option price.