Trades among three members, A, B and C, are settled via multi-lateral netting with a centralized counterparty (CCP). The trades are listed below: i) A buys 5 shares from B ii) B buys 10 shares from A iii) A buys 7 shares from D iv) A sells 10 shares to D v) B sells 15 shares to D What is the net settlement between the CCP and member A?
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- Please answer the 3 questions 1. Why do standard setters formulate rules on the measurement and recognition of share based payment transactions? 2. What is the difference between equity-settled and cash-settled share-based payment transactions? 3. Distinguish between vesting and non-vesting conditions.18 - Which of the following accounts includes securities acquired for long-term purposes and capital shares acquired for the purpose of becoming a partner in another business ? a) 12 Trade Receivables Account Group B) 23 Other Receivables Account Group NS) 22 Trade Receivables Account Group D) 13 Other Receivables Account Group TO) 24 Financial Fixed Assets Account GroupWith a best efforts underwriting, the investment banker O A. Does not receive a fee B. Receives a fee based on the number of securities sold O C. Agrees to sell all of the securities in the offering D. Does its best to sell as many shares as possible E. Both B & D
- Shares of open end investment companies are bought and sold A) from/to the investment company B) on an exchange C) at the previous day's NAVq2a- List and compare three different ways of issuing shares in the primary market. (6 mark worth question)1. Why do standard setters formulate rules on the measurement and recognition of share based payment transactions? 2. What is the difference between equity-settled and cash-settled share-based payment transactions? 3. Distinguish between vesting and non-vesting conditions.
- 16. With regard to contracts that can be settled in either cash or shares IFRS requires that share settlement must be used. IFRS gives companies a choice of either cash or shares. GAAP requires that share settlement must be used. the FASB project proposes that the IASB adopt the GAAP approach, requiring that share settlement must be used.19- Which of the following accounts includes securities acquired for long-term purposes and capital shares acquired for the purpose of becoming a partner in another business ? a) 23 Other Receivables Account Group B) 24 Financial Fixed Assets Account Group NS) 13 Other Receivables Account Group D) 12 Trade Receivables Account GroupVusi and Vuma are in partnership trading as VV Traders specialising in manufacturing protective wear related to COVID-19. The partners share profits equally. The following information pertains to the business activities of the partnership for the year ended 30 June 20.2: VV TRADERS EXTRACT OF FINANCIAL INFORMATION AS AT 30 JUNE 20.2 Note R Loan to Vusi Land and buildings (at cost) Machinery (at cost) Vehicles (at cost) Accumulated depreciation: Machinery Accumulated depreciation: Vehicles Allowance for credit losses Capital contribution: Vusi Capital contribution: Vuma Allowance for settlement discount granted Long-term loan Inventory Trade receivables control Trade payables control Bank Petty cash Current account: Vusi (1 July 20.1) Current account: Vuma (1 July 20.1) 92 650 462 330 160 690 Cell Styles 201 580 29 220 9 810 3 710 350 280 350 280 8 940 70 850 49 490 97 450 41 530 84 590 1 570 42 840 63 220 Profit before year-end adjustments 170 370 Additional information 1. The…
- 2. PAS 28 requires the use of the equity method. Under this method, an investment in associate or joint venture is initially at 2. PAS 28 requires the use of the equity method. Under a. method, an investment in associate or joint venture is initially b. and subsequently measured at Initial measurement 2. En in Subsequent measurement initial cost, adjusted for the investor's share in the investee's changes in a. fair value pe equity cost, adjusted for the investor's share in the investee's changes in equity b. cost C. fair value plus fair value transaction costs d. fair value plus initial cost, adjusted for the investor's share in the investee's changes in transaction costs equity 3.What are the four major components of stockholders' equity? Explain each component. (Click the icon to view a list of possible explanations.) (Select the four major components of stockholders' equity and the explanation that best describes each component.) 1. 2. 3. 4. Major component Explanations Explanation a. Includes the cumulative record of: unrealized gains and losses on investment securities, unrealized pension costs, and unrealized foreign currency translation gains or losses. b. An amount that will be due within the next reporting period. c. Includes the capital stock sold by the entity at face or par value and amounts received above par value. d. The historical record of earnings that have not been paid out or distributed as dividends to shareholders. e. The amount of cash stockholders withdraw from the company's bank account. f. The amount of the subsidiary's net assets owned by outside shareholders. X1. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options? A. Fair value at the date of grant. B. Fair value at each reporting date. C. Expected fair value at the date pf exercise. D. Intrinsic value at each reporting date. 2. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall A. be credited to expense during the period the options lapse. B. be credited to income during the period that the options lapse C. remain in equity. D. be converted into a liability. 3. When should the compensation expense be recorded as a result of share options granted by the enterprise to its employees?A. During the year of grant B. During the year that the options ultimately vest C. During the years when services are required to be rendered by the employees D. During the year when the option first becomes exercisable