Codification: Stock and Fair Value Essay

Identify what authoritative literature addresses bill for stock pay plans. What are the objectives for the postering for share based compensation? 718-10-10-1 The objective of accounting for transactions under share-based payment arrangements with employees is to recognize in the pecuniary statements the employee operate received in exchange for equity instruments issued or liabilities incurred and the related court to the entity as those services are consumed.This Topic uses the terms compensation and payment in their broadest senses to refer to the consideration paid for employee services. 2. How many periods of EPS data essential be presented? 260-10-45-7 EPS data shall be presented for all periods for which an income statement or epitome of earnings is presented. If diluted EPSdata are reported for at least unmatchable 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, d ual presentation stand be accomplished in oneness line on the income statement.3. If a companys outstanding shares are increased through a stock 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 solving 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 familiarised retroactively for all periods presented to reflect that change in capital structure.If changes in common stock resulting from stock dividends, stock splits, or reversestock splits occur aft(prenominal) the close of the period but before the financial statements are issued or are forthcoming to be issued (as discussed in Section 855-10-25), the per-share computations for those and any prior-period financial statements presented shall be based on the stark naked number of shares. If per-share computations reflect m uch(prenominal) changes in the number ofshares, that fact shall be disclosed. Chapter 17 codification appointee 1. When is the fair value of a pledge readily determinable? 820-10-15-5 The rendering of readily determinable fair value indicates that an equity security measure would strike a readily determinable fair value if any one of three conditions is met. One of those conditions is that sales 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 nonprescription(prenominal) market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by Pink Sheets LLC. The translation notes that restricted stock meets that definition if the restriction expires within one year. If an investment funds new(prenominal)wise would have a readily determinable fair value, pull that the investment has a restriction expiring in more than one year, the report entity shall not apply paragraphs 820-10-35-59 through 35-62 and 820-10-50-6A to the investment.2. How is impairment 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 equal to the previous amortized cost basis little the other-than-temporaryimpairment recognized in earnings.For debt securities for which other-than-temporary impairments were recognized in earnings, the difference between the new amortized cost basis and the cash flows evaluate to be collected shall be accreted in accordance with existing applicable guidance as interestingness income. An entity shall continue to estimate the present v alue of cash flows expected to be collected over 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 succeeding evaluation, there is a significant increase in the cash flows expected to be collected or if actual cash flows are importantly greater than cash flows previously expected, such changes shall be accounted for as a prospective adjustment to the accretable yield in accordance with Subtopic 310-30 even if the debt security would not otherwise be within the scope of that Subtopic. Subsequent 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 Section does not address when a holder of a debt security would place a debt security on nonaccrual status or how to subsequently re port income on a nonaccrual debt security. ) 3. When would an investor stop applying the equity rule in an investment? Are there any exceptions to this rule? 323-10-35-20 The investor usually shall discontinue applying the equity method if the investment (and net advances) is reduced to zero(a) 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.