Question: Silky Limited a private company that complies with accounting standards
Silky Limited, a private company that complies with accounting standards for private enterprises (ASPE), has redeemable preferred shares outstanding that carry a dividend of 5%. If the shares are not redeemed within five years, the dividend will double every five years from then on. How should Silky account for this instrument? How should Silky treat the dividends associated with the redeemable preferred shares?
Answer to relevant QuestionsMilano Ltd. issued 1,000 preferred shares for $10 per share. The preferred shares pay an annual, cumulative dividend of $0.50 per share, and become mandatorily redeemable if net income drops below $500,000 in any fiscal ...On January 1, 2011, Gottlieb Corporation issued $6 million of 10-year, 7%, convertible debentures at 104. Investment bankers believe that the debenture would have sold at 102 without the conversion privilege. Interest is to ...On January 2, 2011, Parton Corp. issues a $10-million, five-year note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 5.8%. Parton later decides ...The following are unrelated transactions. 1. On March 1, 2011, Loma Corporation issued $300,000 of 8% non-convertible bonds at 104, which are due on February 28, 2028. In addition, each $1,000 bond was issued with 25 ...Refer to P16–1, but assume that Hing Wa wrote (sold) the call option for a premium of $240 (instead of buying it). Assume that the market price of the shares and the value of the options is otherwise the same. In Problem ...
Post your question