BUS 321 Study Guide - Midterm Guide: Executory Contract, Liquidity Risk, Call Option
23 Sep 2017
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Issue: purchase commitments meet acc def of deriv: acc standards under: Ifrs generally presented as equity: aspe generally presented as contra-equity, not all contracts involving own equity inst are treated as equity, sometimes fin a/l. If ob to pay cash, = fin lia realized: under, examples of lia: Other settlement options: econ substance eq-like features, defs of f/s, upon initial recog, measure @ fv (usually xc valye) If have components of debt & eq: relative fv method (proportional) use mv of similar inst, residual value method (incremental, under: Issued b/c: can raise eq cap w/o giving up unnecessary ownership control, can achieve debt fin @ lower cost b/c offer lower int rate (b/c provides invest w/opp to own equity) If =/= exercise b/c forfeited it due to an employee failing to satisfy service requirement, est of e(cid:454)p that has (cid:271)ee(cid:374) (cid:396)e(cid:272)o(cid:396)ded should (cid:271)e ad(cid:448) as i(cid:374) est: under:
