Questions from Intermediate Accounting

Q: Air France–KLM (AF), a Franco-Dutch company

Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year end...

Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This mate...

Q: During its first year of operations, Eastern Data Links Corporation entered

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 8 mi...

Q: Diluted EPS would be precisely the same whether convertible securities were actually

Diluted EPS would be precisely the same whether convertible securities were actually converted or not. Why?

Q: When the income statement includes discontinued operations, which amounts require per

When the income statement includes discontinued operations, which amounts require per share presentation?

Q: In addition to EPS numbers themselves, what additional disclosures should be

In addition to EPS numbers themselves, what additional disclosures should be provided concerning the EPS information?

Q: The fair value of stock options can be considered to comprise two

The fair value of stock options can be considered to comprise two main components. What are they?

Q: LTV Corporation grants SARs to key executives. Upon exercise, the

LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive either cash or stock equal in value to the excess of the market price at exercise over the share pr...

Q: What is restricted stock? How do restricted stock awards differ from

What is restricted stock? How do restricted stock awards differ from restricted stock units (RSUs)? Describe how compensation expense is determined and recorded for a restricted stock award plan.

Q: Transactions that involve merely purchases or sales of cash equivalents generally are

Transactions that involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows. Describe an exception to this generalization. What is the essential cha...