Question

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items:

1. Initial measurement of stock options.

2. The measurement date for share-based payments classified as liabilities.

3. The formula to calculate diluted earnings per share.

4. The way stock dividends or stock splits in the current year affect the presentation of EPS in the income statement.

Answer 1

solution:

TheFASB Accounting Standards Codificationrepresents the single wellspring of definitive U.S. proper accounting rules. The explicit reference for every one of the accompanying things is:

1. Investment opportunities: FASB ASC 718-10-30: "Remuneration Stock Compensation—Overall—Initial Measurement."

2. The estimation date for offer based installments delegated liabilities: FASB ASC 718-30-30-1: "Remuneration—Awards Classified as Liabilities—Initial Measurement—Public Entity."

3. The equation to compute weakened income per share. FASB ASC 260-10-45-16: "Profit per Share—Overall—Other Presentation Matters—Computation of Diluted EPS."

4. The manner in which stock profits or stock parts in the present year influence the introduction of EPS on the pay articulation.

FASB ASC 260-10-55-12: "Income per Share—Overall—Implementation Guidelines—Stock Dividends or Stock Splits."