Calculate the amount of profit or loss, Financial Accounting

On 1 January 2009, a company, Yeti, granted an employee the right to choose between (i) 30,000 Yeti shares or (ii) a cash-payment equivalent to the price of 24,000 Yeti shares on 31 December 2011. Each would be receivable on 31 December 2011, providing the person is still employed by the company on that date, which was and still is expected to be the case.

A condition of the award is that if the shares are taken, they must be held until at least 31 December 2013 before they can be sold. The market price of a share was $5.82 on 1 January 2009, $5.92 at 31 December 2009 and $6.20 at 31 December 2010. The fair value of the share alternative has been calculated at $6.14 on 1 January 2009, $6.18 at 31 December 2009 and $6.32 at 31 December 2010.

Requirement

Calculate the amount to be recognised in profit or loss for the year ending 31 December 2010.

Posted Date: 3/15/2013 3:04:52 AM | Location : United States







Related Discussions:- Calculate the amount of profit or loss, Assignment Help, Ask Question on Calculate the amount of profit or loss, Get Answer, Expert's Help, Calculate the amount of profit or loss Discussions

Write discussion on Calculate the amount of profit or loss
Your posts are moderated
Related Questions
IFRS guidelines IFRSs Gives the guideline on the content and the accounting statements of certain events and transactions in the financial statements. The following IFRSs are r

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

Extent of Tests of Control -Every year AUDITOR should obtain sufficient evidence about whether company's internal control over financial reporting, including controls for all inter

According to the FASB, the usefulness of accounting is judged by which of the following two qualitative characteristics of accounting information? Comparability and neutrality Unde

Settlement Method - Method of ACCOUNTING for SECURITIES whereby transactions are recorded on the date securities settle by delivery or receipt of securities and receipt or payment

Question 1 Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year

Promissory Note - Evidence of a DEBT with specific amount due and interest rate. Note may specify a maturity date or it may be payable on demand. Promissory note may or may not acc

What is bargain purchase? Financial assets acquired for less than FMV. In a bargain purchase BC, a corporate entity is acquired by another for an amount that is less than the

In January 2013, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building I and build a new store in its place. Building 2 will be a co

SED Analysis SDE i.e. Scarce, Difficult and Easy analysis estimates the significance of inventory items on the basis of their availability. According to SDE analysis the invent