RED Corp. granted options for 20,000 common shares to certain executives on January 1, 2019, when the market price was $52 per share. The option price is $44 per share and the options must be exercised between January 1, 2021, and December 31, 2023, after which time they expire. The options state that the related service period is January 1, 2019 to December 31, 2020. An options pricing model determined that, at the date of grant, the estimated fair value of these options was $1,000,000. Assume that RED Corp. follows IFRS.
REQUIRED:
(a) Calculate total compensation expense, consistent with IFRS.
(b) Explain when compensation expense should be recognized, consistent with IFRS. Is this reasonable? Explain.
(c) Prepare journal entries for the following, consistent with IFRS (items 3 and 4 are independent assumptions). :
1. To record the issuance of the options (grant of options) on January 1, 2019.
2. To record the compensation expense, if any. Date the entry(ies). Assume all employees remain employed by RED Corp.
3. To record the exercise of the options, assuming all of the options were exercised on the earliest possible date, January 1, 2021.
4. To record the expiration of the options, assuming all of the options were not exercised because the market price fell below the exercise price before January 1, 2021 and stayed below the exercise price for the balance of the option period.
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: The projected income before tax is?
In: Accounting
Below, you are provided with values of several perfectly or near-perfectly liquid assets (before the transactions described below take place). Asset Value Savings Deposits $170 million Money Market Mutual Funds $40 million Travelers' Checks $5 million Currency and Coins $25 million Time Deposits $30 million Checking Deposits $240 million Suppose that households, on average, take $45 million out of their savings account balances and deposit those funds into their checking accounts. You will analyze the effect of these transactions on M1 and M2 in this assignment. Make sure to address the following issues/questions in your response: 1) Describe which of the two definitions of money (M1 or M2) is a stricter definition of money and why; 2) Calculate the value of M1 before and after the transactions described above; 3) Calculate the value of M2 before and after the transactions described above; 4) Identify whether M1 has grown, shrunk, or neither; and 5) Identify whether M2 has grown, shrunk, or neither.
In: Economics
A mass m = 17 kg is pulled along a horizontal floor with NO friction for a distance d =5.7 m. Then the mass is pulled up an incline that makes an angle θ = 34° with the horizontal and has a coefficient of kinetic friction μk = 0.38. The entire time the massless rope used to pull the block is pulled parallel to the incline at an angle of θ = 34° (thus on the incline it is parallel to the surface) and has a tension T =83 N.
What is the work done by tension before the block goes up the incline? (On the horizontal surface.)
What is the speed of the block right before it begins to travel up the incline?
What is the work done by friction after the block has traveled a distance x = 2.6 m up the incline? (Where x is measured along the incline.)
What is the work done by gravity after the block has traveled a distance x = 2.6 m up the incline? (Where x is measured along the incline.)
How far up the incline does the block travel before coming to rest? (Measured along the incline.)
In: Physics
9. Explain why an organizational structure other than hierarchy might make sense in the knowledge economy. Can you justify a hierarchical organization?
11. How would you encourage innovation when whatever is invented or created is expensive to invent or create and has a very low cost of copying and distribution?
12. Why do economists tend to disagree with protectionist measures that interfere with trade and also support patents and copyrights?
In: Economics
Question #1: Briefly discuss how technological innovation effects the trade activities around the world.
Question #2: Please write a note about major trade agreement of china with rest of world countries and their impact of China GDP (Gross domestic product)
Question #3: How USA president (Trump) decisions effect the trade activities with China.
Question #4: What is the export and import (in Yuan) values of China.
In: Economics
In: Economics
In: Finance
1. What do you think about our current production and consumption patterns? How does a product's life-cycle influence sustainability?
2. How might continued economic growth (in terms of increased GDP) impact the planet? Are there viable alternatives (e.g., GPI, green consumerism, de-growth, circular economy) to this trajectory? What might be the role of innovation and technology in achieving economic sustainability?
please no handwriting
In: Economics
Subiject: Innovation and technology
In today’s fast-paced world, we need beneficial partnerships to encourage creativity, leverage experience and maximise resources that can help to solve at a business solution as quickly as possible. By also looking for partnerships and collaborating externally, organisations are able to innovate much more quickly and even create solutions to problems that may not yet be prevalent or salient issues. What are the reasons behind the success of collaborative research?
In: Computer Science