Question
Codification Questions (20 points) Determine the Specific citations in the FASB Accounting Standards Codification for each of the following (All that is needed here is
Codification Questions (20 points)
Determine the Specific citations in the FASB Accounting Standards Codification for each of the following (All that is needed here is the specific ASC citation for a. thru d.):
a. Initial measurement of stock options.
b. The measurement date for share-based payments classified as liabilities.
c. The formula to calculate diluted earnings per share.
d. The calculation of the weighted average number of shares.
Give the specific citation and then in your own words briefly explain:
e. The alternative formats permissible for reporting comprehensive income.
Give the citation for the following:
f. Find the two methods of measurement which are acceptable for variable consideration in revenue contracts? Explain which circumstances would make each more appropriate to be used in measuring revenue.
g. Share-based payment of Employees. A company offers stock options to its executives as part of their compensation package. The each stock option gives the executive the right to purchase a share of companys ordinary common stock at a specific price. The options vest immediately at the grant date and if the executive desires they may request cash settlement of the option at its intrinsic value rather than exercising the option. You have two colleagues that are split in how to classify the options at the grant date. One believes it should be classified as equity, the other believes it is a liability. Find the specific citation and explain your reasoning to settle the argument.
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