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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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Sometimes the risks posed by a project are deemed unacceptably large compared to the potential benefits, and the ultimate avoida
Pavel [41]

Answer:

TRUE

Explanation:

Sometimes the risks posed by a project are deemed unacceptably large compared to the potential benefits, and the ultimate avoidance strategy is to not perform the project at all.

The major reason for risk identification in risk analysis is to know if there are risks that will either cause the project to fail or erase all the potential benefits of the project.

Risks that have been categorized as both <u>high impact and high probability of occurrence will most likely cause a project to be terminated</u>, or to fail if it is continued in spite of the risks identified.

Such projects can only be performed if they somission critical and their impact and probability of occurrence can be reduced

5 0
3 years ago
Consider a public policy aimed as e-cigarettes. Assume the elasticity of demand is 0.4. If a Juul with two pods cost $40.00 and
Iteru [2.4K]

In order to reduce the Juuling by 20%, price would have to rise by 50%.

<h3>What is price elasticity of demand?</h3>

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.

<h3>What should be the percentage rise in price?</h3>

0.4 = 20%/ price

price = 20% / 0.4

= 50%

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

6 0
2 years ago
A plant operates on Just-in-Time/lean principles. The total production requirements for next three days are 3000 units of X, 300
Sergio039 [100]

Answer:

Just-in-Time/Lean Principles

The plan that best represents uniform plant loading for this plant is:

c. Produce 1500 units of X on day 1, 1500 units of X on day 2, and then 300 units of Y and 1200 units of Z on day 3.

Explanation:

a) Data and Calculations:

Total production requirements               Product X   Product Y   Product Z

for the next three days at the factory       3,000         300             1,200

Uniform plant loading plan:

Day 1                                                             1,500             0                    0

Day 2                                                            1,500             0                    0

Day 3                                                                   0        300             1,200

Total production on the three days          3,000        300              1,200

b) The uniform plant loading plan within the just-in-time or lean production environment ensures that wastes and disruptions are minimized.  It reduces inventory of raw materials, work-in-process, and finished goods, and loss due to production stoppages and setups.  Operating on this just-in-time principle, production of product X will continue from Day 1 through Day 2, while production of products Y and Z will take place on Day 3, with the same quantity of products produced each day.

6 0
3 years ago
Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $243,000, fixed assets of $793,000, current liab
julsineya [31]

Answer:

$557,500

Explanation:

Given that,

Current assets = $243,000

Fixed assets = $793,000

Current liabilities = $185,000

Long-term debt = $293,500

Total assets:

= Current assets + Fixed assets

= $243,000 + $793,000

= $1,036,000

Total liabilities:

= Current liabilities + Long-term debt

= $185,000 + $293,500

= $478,500

Therefore,

Total stockholders' equity:

= Total assets - Total liabilities

= $1,036,000 - $478,500

= $557,500

5 0
3 years ago
Marigold Corp. constructed a building at a cost of $13600000. Weighted-average accumulated expenditures were $5700000, actual in
nasty-shy [4]

Answer:

$121,750

Explanation:

Cost of the building = 13600000

Average accumulated expenses = 5700000

Actual interest = 560000

Avoidable interest = 280000

Salvage value = 1110000

Life in years = 40 years

Depreciation expenses for 1st full year = {(Average accumulated expenses + Avoidable interest) - Salvage value} / Life in years

Depreciation expenses for 1st full year = (5700000 + 280000 - 1110000) / 40

Depreciation expenses for 1st full year = 4870000 / 40 years

Depreciation expenses for 1st full year = $121,750

4 0
3 years ago
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