Codification: Stock and Fair Value Essay

Identify what authoritative literature addresses accounting for entrepot compensation plans. What ar the objectives for the accounting for share based compensation? 718-10-10-1 The objective of accounting for transactions under share-based payment arrangements with employees is to key out in the financial statements the employee services received in exchange for equity instruments issued or liabilities incurred and the related approach to the entity as those services are consumed.This Topic uses the terms compensation and payment in their broadest senses to refer to the retainer paid for employee services. 2. How many mensess of EPS data must be presented? 260-10-45-7 EPS data shall be presented for all periods for which an income statement or summary of earnings is presented. If diluted EPSdata are account for at least one period, they shall be reported for all periods presented, even if they are the same amounts as basicEPS. If basic and diluted EPS are the same amount, mult iple presentation can be accomplished in one line on the income statement.3. If a confederations outstanding shares are developmentd through a store split or stock dividend, how would that change the presentation of EPS data? 260-10-55-12 If the number of common shares outstanding increases as a result of a stock dividend or stock split (see Subtopic 505-20)or decreases as a result of a reverse stock split, the computations of basic and diluted EPS shall be adjusted retroactively for all periods presented to reflect that change in groovy structure.If changes in common stock resulting from stock dividends, stock splits, or reversestock splits occur after the close of the period but before the financial statements are issued or are available to be issued (as discussed in voice 855-10-25), the per-share computations for those and any prior-period financial statements presented shall be based on the new number of shares. If per-share computations reflect such changes in the number ofshares, that fact shall be disclosed. Chapter 17 codification assignment 1. When is the fair value of a hostage readily determinable? 820-10-15-5 The definition of readily determinable fair value indicates that an equity security system would watch a readily determinable fair value if any one of three conditions is met. One of those conditions is that gross revenue prices or bid-and-asked quotations are currently available on asecurities exchange registered with the U. S.Securities and Exchange Commission (SEC) or in the over-the-counter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National experience of Securities Dealers Automated Quotations systems or by Pink Sheets LLC. The definition notes that restricted stock meets that definition if the restriction expires at heart one year. If an enthronisation otherwise would have a readily determinable fair value, except that the investment funds has a restriction ex piring in more than one year, the reporting entity shall not apply paragraphs 820-10-35-59 through 35-62 and 820-10-50-6A to the investment.2. How is handicap of a security accounted for? 320-10-35-35 In periods after the recognition of an other-than-temporary impairment loss for debt securities, an entity shall account forthe other-than-temporarily impaired debt security as if the debt security had been purchased on the measurement date of the other-than-temporary impairment at an amortized cost basis tally to the previous amortized cost basis less the other-than-temporaryimpairment recognized in earnings.For debt securities for which other-than-temporary impairments were recognized in earnings, the difference in the midst of the new amortized cost basis and the specie flows expected to be collected shall be accreted in consent with existing applicable guidance as interest income. An entity shall continue to estimate the present value of cash flows expected to be collected ove r the life of the debt security. For debt securities accounted for in accordance with Subtopic 325-40, an entity should look to that Subtopic to account for changes in cash flows expected to be collected. For all otherdebt securities, if upon subsequent evaluation, there is a significant increase in the cash flows expected to be collected or if actual cash flows are significantly greater than cash flows previously expected, such changes shall be accounted for as a prospective adjustment to the accretable make up in accordance with Subtopic 310-30 even if the debt security would not otherwise be within the scope of that Subtopic. succeeding increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities shall be included in other comprehensive income.(This arm does not address when a holder of a debt security would place a debt security on nonaccrual status or how to subsequently report income on a nonaccrual debt security. ) 3. When would an investor stop applying the equity method in an investment? Are there any exceptions to this rule? 323-10-35-20 The investor ordinarily shall discontinue applying the equity method if the investment (and net advances) is reduced to zero and shall not provide for additional losses unless the investor has guaranteed obligations of the investee or is otherwise move to provide further financial support for the investee.