发布时间 : 星期六 文章Intermediate accounting solution of c19 - 鐧惧害鏂囧簱更新完毕开始阅读980098e9998fcc22bcd10d20
Chapter 19 - Share-Based Compensation and Earnings Per Share
Exercise 19-23
(amounts in thousands, except per share amounts)
Basic EPS
$2,000 $2,000
—————————————————————————— = ——— = $2.96 600 + 100 (9/12) 675
shares at Jan. 1
new shares
net income
Diluted EPS
$2,000 $2,000
—————————————————————————— = ——— = $2.74 600 + 100 (9/12) + 4 x 10 + 15 730
*
shares at Jan. 1
new shares
contingent shares*
contingent shares**
net income
Because the conditions currently are met (i.e., market price exceeds $48) for issuing 10,000 shares in each of the next 4 years, those shares are assumed issued for diluted EPS.
The condition for the other 15,000 shares also is met (the controller is employed), so those shares are assumed issued for diluted EPS.
**
19-21
Chapter 19 - Share-Based Compensation and Earnings Per Share
Exercise 19-24
List A List B
Options exercised.
Simple capital structure. Basic EPS.
Convertible preferred stock. __e_ 1. __m_ 2. __a_ 3. Subtract preferred dividends. a. Time-weighted by 5/12. b. Time-weighted shares assumed issued c. plus time-weighted-actual shares. d. __i_ 4. Midyear event treated as if e. it occurred at the beginning of the reporting period. f. __l_ 5. Preferred dividends do not reduce g. earnings. h. __b_ 6. Single EPS presentation. i. __g_ 7. Stock split. j. __d_ 8. Potential common shares. k. __f_ 9. Exercise price exceeds market price. l. __c_10. No dilution assumed. __j_ 11. Convertible bonds. m. _n_ 12. Contingently issuable shares. n. _k_ 13. Maximum potential dilution. _h_ 14. Shown between per share amounts for net income and for income from continuing operations.
19-22
Earnings available to common shareholders. Antidilutive.
Increased marketability. Extraordinary items. Stock dividend.
Add after-tax interest to numerator. Diluted EPS.
Noncumulative, undeclared preferred dividends.
Common shares retired in August.
Include in diluted EPS when conditions for issuance are met.
Chapter 19 - Share-Based Compensation and Earnings Per Share
Exercise 19-25
Requirement 1
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. The appropriate accounting treatment for the situation is specified in FASB ASC 718–10–50: ―Compensation–Stock Compensation–Overall–Disclosure.‖
Requirement 2
Section 718–10–50–2c states that companies must disclose:
For the most recent year for which an income statement is provided, both of the following:
1. The number and weighted-average exercise prices (or conversion ratios) for each of the following groups of share options:
1. Those outstanding at the beginning of the year 2. Those outstanding at the end of the year
3. Those exercisable or convertible at the end of the year 4. Those that during the year were:
1. Granted
2. Exercised or converted 3. Forfeited 4. Expired
19-23
Chapter 19 - Share-Based Compensation and Earnings Per Share
Exercise 19-26
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. The specific citation for each of the following items is:
1. Stock options:
FASB ASC 718–10–30: ―Compensation-Stock Compensation–Overall–Initial Measurement.‖
2. The measurement date for share-based payments classified as liabilities:
FASB ASC 718–30–30–1: ―Compensation–Awards Classified as Liabilities– Initial Measurement–Public Entity.‖
3. The formula to calculate diluted earnings per share.
FASB ASC 260–10–45–16: ―Earnings per Share–Overall–Other Presentation Matters–Computation of Diluted EPS.‖
4. The way stock dividends or stock splits in the current year affect the
presentation of EPS on the income statement.
FASB ASC 260–10–55–12: ―Earnings per Share–Overall–Implementation Guidelines–Stock Dividends or Stock Splits.‖
19-24