On 01/07/2019 Amla, Giloy & Tulsi Ltd., grants 200options to each of its 2100 employees at ₹.120 whenthe market price is ₹.400. The vesting date is 31stMarch, 2022 and the exercise date is 31st March, 2023.At the end of the year 1, the company founds that 100employees had left and estimated the expected annualforfietures rate at 10%. Fair value of a share issuedunder ESOP was ₹.186. At the end of year 2, thecompany found that 80 employees had left andreestimated the expected annual forfietures at 5%. Fairvalue of share issued under ESOP was 7.208. At theend of year 3, the company found that 192 employeeshad left. Fair value of share issued under ESOP was.160. Only 1700 employees exercised their options on31st March, 2023. The face value of equity share is *.10per share. As per Ind AS 102 calculate the expenses tobe recognised in Year 1, Year 2 and Year 3 by Fair ValueMethod and calculate the Value of options forfeited.

Explanation:Step 1: Calculate the total number of options granted. Total options granted = 200…

Answered: On 01/07/2019 Amla, Giloy & Tulsi Ltd.,…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

Cleopatra Ltd offers $400 million of debentures, which is payable on application. The Interest rate on debentures is 8.5% per annum, payable annually. By 15 March 2020, application is received for $450 million debenture. The debentures are allotted on 1May2020, which coincides with Cleopatra Ltd’s financial year-end. Additional debenture application money is returned on 1June2020. Required: Prepare the journal entries to record the issue of the debenture on 1 May2020and annual interest payments on 30April2021 and 30 April 2022.
A company has entered a construction contract on 1st January 2019. The contract will take 2 years to complete and the final contract price is OMR 6,000,000. At the end of first year 2019 the company incurred a cost of OMR 2,400,000 and 60% of work has been completed. Certificate for work completed have been issued to the value of OMR 3,600,000. It is estimated that a further cost of OMR1, 600, 000 will be incurred in the year 2020 to complete the contract. You are required to calculate the amount due from customer that will be accounted for the year 2019 a.OMR 3,400,000 b.OMR 3,600,000 c.None of the options d.OMR 3,800,000
Modern Engineering (ME) entered into a contract for 3-year maintenance services with a manufacturing concern. Same service will be rendered over 3-year period. Contract required 100% upfront fees of Rs. 300,000 payable at the time of agreement on January 1, 2018. Prevailing market interest rate for ME is 12%. ME prepares its financial statements on 31st December every year. Required: All journal entries for above transaction.
Cleopatra Ltd offers $400 million of debentures, which is payable on application. The Interest rate on debentures is 8.5% per annum, payable annually. By 15 March 2020, application is received for $450 million debenture. The debentures are allotted on 1 May 2020, which coincides with Cleopatra Ltd’s financial year-end. Additional debenture application money is returned on 1 June 2020.Required:Prepare the journal entries to record the issue of the debenture on 1 May 2020 and annual interest payments on 30 April 2021 and 30 April 2022
On September 30, 2019, STONE REACH Co., Inc. was awarded the contract to build a 1,000 room hotel for P24,000,00O0. Among others, the parties agreed to the following:1.Ten percent mobilization fee (deductible from "final billing") payable within ten days from the signing of the contract.2.Retention of ten per cent on all billings (to be paid with the final billing, upon completion and acceptance of the project); and 3.Progress billings are to be paid within 2 weeks upon acceptance. By the end of 2019, the company had presented one progress billing, corresponding to 10% completion, which was evaluated and accepted by the client on December 29, 2019 for payment in January of the next year. In 2019, assuming use of the percentage-of-completion method of accounting STONE REACH Co., Inc. received a total fee of
On 1 st January, 2020 Mr. Abid ordered a number of motor vehicles whose cash price was Tk 25,000 and entered into a hire-purchase agreement to pay eight quarterly instalments of Tk 3,300 each. There was no down payment in the agreement. The first payment to be made on 31st March, 2020. The rate of interest is 5% per annum and the vehicles are to be depreciated at 10% per annum on the diminishing balance. Show the journal entries in the book of Mr. Abid for two year ended 31st Dec, 2020.
Use the following information for the next two questions. Funan Industries purchases new specialized manufacturing equipment on July 1, 2019. The equipment cash price is P79,000. Funan signs a deferred payment contract that provides for a down payment of P10,000 and an 8-year note for P103,472. The note is to be paid in 8 equal annual payments of P12,934. The payments include 10% interest and are made on June 30 of each year, beginning June 30, 2020. (1) The carrying amount of the note payable on December 31, 2020 is a. P66,115 b. P62,966 c. P59,818 d. P56,329 (2) The total interest expense for the year ended December 31, 2020 is a. P6,900 b. P6,612 c. P6,599 d. P5,982
Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following terms. The purchase price of $650,000 will be payable as follows:12% immediately in cashThe remaining $572,000 in 6 years.Interest of 3% is payable each December 31 on the balance of $572,000.Write the journal entries for McCormick (the seller) for the years 2020 – 2022 assuming that the cash price of the equipment if purchased today would be $590,000.McCormick reports under IFRS
On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000. Term of payments includes issuing a 5-year noninterest-bearing note payable equally every end of the year. The effective interest rate is 15%. The entity used 2 decimal places for the PVF. Requirements: How much is the initial cost of the equipment?
A company has entered a construction contract on 1st January 2018. The contract will take 2 years to complete, and the final contract price is OMR 6,000,000. At the end of first year 2018 the company incurred a cost of OMR 2,400,000 and 70% of work has been completed. Certificate for work completed have been issued to the value of RO 4,200,000. It is estimated that a further cost of OMR 1,600,000 will be incurred in the year 2019 to complete the contract. You are required to calculate the profit that will be accounted for the year 2018. O a. OMR 200,000. O b. OMR 2,000,000. OC. OMR 2,400,00. O d. OMR 1,800,000.
Brainy Company started the construction of a building for a customer at a fixed contract price of P2,000,000 on January 1, 2019. On the same date, the customer paid a mobilization fee equal to 5% of contract price that will be deductible from the first billing. The outcome of construction contract can be estimated reliably except in 2019 which is the start of the project. The company billed the customer equivalent to 30%, 20% and 40% of the contract price during 2019, 2020 and 2021, respectively. The remaining billing was made at the year of completion of the project. The company made collection from the customer at the end of 2019, 2020 and 2021, in the amount of P240,000, P900,000 and P360,000, respectively. Direct costs related to the said project (see image below).1. What is the Percentage of completion in 2020? 2. How much is the Construction Revenue to be recognized in 2020? 3. How much is the Gross Income (Loss) to be recognized in 2021? 4. How much is the balance of Account…

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS