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AfilCa [17]
3 years ago
9

ASC 480-10 provides guidance on determining whether (1) certain financial instruments with both debt-like and equity-like charac

teristics should be accounted for outside of equity (i.e., as liabilities or, in some cases, assets) by the issuer and (2) SEC registrants should present certain redeemable equity instruments as temporary equity. Examples of contracts and transactions that may require evaluation under ASC 480-10 include:________
Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

. Redeemable shares.

• Redeemable noncontrolling interests.

• Forward contracts to repurchase own shares.

• Forward contracts to sell redeemable shares.

• Written put options on own stock.

• Warrants (and written call options) on redeemable equity shares.

• Warrants on shares with deemed liquidation provisions.

• Puttable warrants on own stock.

• Equity collars.

• Share-settled debt (this term is used to describe a share-settled obligation that  is not in the legal form of debt but has the same economic payoff profile as debt).

• Preferred shares that are mandatorily convertible into a variable number of common shares.

• Unsettled treasury stock transactions.

• Accelerated share repurchase programs.

• Hybrid equity units.

Explanation:

ASC 480-10 is used when an issuer, in the declaration of its financial position, has to categorize some financial instruments that share the characteristics of liabilities and equities. The issuer always classifies legal-form debt as liability and this makes it not applicable under the ASC 480-10.

Under the ASC 480-10, three types of financial instruments are meant to be classified and they include;

1. Mandatorily redeemable financial instruments

2. Obligations to repurchase the entity’s equity shares by transferring assets, and

3.Certain obligations to issue a variable number of equity shares

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Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in
Misha Larkins [42]

Answer: Opportunity cost

Explanation:

From the question, we are informed that Joe sold gold coins for $1000 that he bought a year ago for $1000 and he said that at least he didn't lose any money on my financial investment.

We are further told that his economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins.

This is a concept of opportunity cost. Opportunity cost is what one forgoes when one makes a different choice. The opportunity cost in this case is the bank certificate of deposit.

4 0
3 years ago
"Scuba Diving." Marcy invented a new type of mask that was not subject to fogging forscuba divers and obtained a patent on it. S
weqwewe [10]

Answer:

The correct option is C,royalties

Explanation:

Royalties refers to payment received by the owner of  patent from the individuals making use of the patented design or product as a reward for creativity and originality.

Profits are excess of revenue over costs of doing business overall

Receipts are  inflows of cash and cash equivalents to the business either form sales transactions or from sources such as disposal of assets as well as issuance of shares.

Payoffs refers to the amount paid to an employee either upon retirement or on leaving a job

6 0
2 years ago
You must pick one of two​ wagers, for an outcome based on flipping a fair coin. 1. You win ​$440 if it comes up heads and lose ​
UkoKoshka [18]

Answer:

See Below

Explanation:

Expected value is the sum of the products of the probability and payoff of each.

<u>Wager 1:</u>

probability of heads and tails, both is 0.5

Win = 440

Loose = 110

So,

Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165

<u>Wager 2:</u>

Similar to wager 1

Win = 770

Loose = 220

So,

Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275

2nd wager is better, in this sense.

4 0
3 years ago
InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's cu
Ne4ueva [31]

Answer: resistance to change

Explanation:

From the question, we are informed that InSeason Inc. started a chain of organic supermarkets that had initial success and that the managers achieved a mastery of the firm's current environment, thereby filling a need in the market.

We are further told that InSeason defined and measured it success by financial metrics, with a focus on short-term performance and that as a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success.

As a result of this tightly coupled system, InSeason developed a resistance to change. Resistance to change could be as a result of fear of failure by the company.

6 0
2 years ago
A​ monopolist's maximized rate of economic profits is ​$2 comma 700 per week. Its weekly output is 900 ​units, and at this outpu
LuckyWell [14K]

Answer:

Average total cost= $46

Marginal revenue= $33

Explanation:

In this instance the monopolist's total cost is the revenue from sale of one unit less the economic profits per unit

Economic profit per unit= 2,700/900

Economic profit per unit= $3

Average total cost= (Price per unit) - (Economic profit per unit)

Average total cost= 49 - 3= $46

For this instance marginal revenue is equal to marginal cost.

Marginal revenue= Marginal cost= $39

3 0
2 years ago
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