The board of Clapton Ltd (Clapton) are considering the following non-cash remuneration-based options for its executive...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The board of Clapton Ltd (Clapton) are considering the following non-cash remuneration-based options for its executive committee members: 1 Issuing 1,000 shares to each member of its executive committee on 1 July 2020 conditional on the executives remaining employed by the company during the vesting period. The shares will vest on 30 June 2021 if Clapton's earnings increase by more than 8% on the previous year; at 30 June 2022 if Clapton's earning increase by an average of more than 7% per year over the two-year period, and at 30 June 2023 if earnings increase by an average of more than 5% per year over the three-year period. Issuing 1,000 shares to each member of its executive committee on 1 July 2020 conditional on the executive remaining employed by the company over the next three years. 11 III Issuing 1,000 share options to each member of its executive committee on 1 July 2020 conditional on the executive remaining employed by the company over the next three years. The share options cannot be exercised unless the share price increases by more than 10% over the three-year period. IV Issuing 1,000 share options to each member of its executive committee on 1 July 2020 conditional on the executives remaining employed by the company for the next five years. The share options have a variable exercise price, and will vest only if the company's market share increases by more than 10% over the five-year vesting period. Which of the proposals contains a non-market performance condition in accordance with AASB 2 Share- based payment? Select one: O a. I and II only. O b. I and IV only. O c. I, III and IV only. The board of Clapton Ltd (Clapton) are considering the following non-cash remuneration-based options for its executive committee members: 1 Issuing 1,000 shares to each member of its executive committee on 1 July 2020 conditional on the executives remaining employed by the company during the vesting period. The shares will vest on 30 June 2021 if Clapton's earnings increase by more than 8% on the previous year; at 30 June 2022 if Clapton's earning increase by an average of more than 7% per year over the two-year period, and at 30 June 2023 if earnings increase by an average of more than 5% per year over the three-year period. Issuing 1,000 shares to each member of its executive committee on 1 July 2020 conditional on the executive remaining employed by the company over the next three years. 11 III Issuing 1,000 share options to each member of its executive committee on 1 July 2020 conditional on the executive remaining employed by the company over the next three years. The share options cannot be exercised unless the share price increases by more than 10% over the three-year period. IV Issuing 1,000 share options to each member of its executive committee on 1 July 2020 conditional on the executives remaining employed by the company for the next five years. The share options have a variable exercise price, and will vest only if the company's market share increases by more than 10% over the five-year vesting period. Which of the proposals contains a non-market performance condition in accordance with AASB 2 Share- based payment? Select one: O a. I and II only. O b. I and IV only. O c. I, III and IV only.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The proposal that cont... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Bonsai (Pty) Ltd is involved in the supply of plants, koi fish, feeding products, and other accessories for marine life. The company had the following income and expenses for the year of assessment:...
-
An investor creates an investment portfolio from stock A and stock B where she invests 0.5 of her wealth in stock A and 0.5 of her wealth in stock B. Stock A has a beta of 1.39 and stock B has a beta...
-
1. Seven candidates for mayor, four candidates for city council president, and six propositions are being put before the electorate. How many different ballots could be cast, assuming that every...
-
At ARCO Transportation, a $1 billion division of Atlantic Richfield, employees are hired, promoted, and appraised according to how they fulfill the performance dimensions most valued by the company....
-
In a simple throwball game on ice, a \(90-\mathrm{kg}\) athlete throws a \(1.0-\mathrm{kg}\) ball at \(15 \mathrm{~m} / \mathrm{s}\). The ball is caught by his \(80-\mathrm{kg}\) teammate. If \(20...
-
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the...
-
10. A plastic ball is rising in water with terminal speed v. If we use a different plastic whose density is double that of the original ball but still less that density of water, keeping the radius...
-
In this exercise you will be assuming the role of an Account Manager working within our Personal Care Appliances category during Amazon Black Friday. You act as a general manager responsible for...
-
4. Below is an example of mismanaged supply and demand of cruise package RW Cruise faced in September 2022. The Star, Tuesday 6/Sept/2022 SINGAPORE (The Straits Times/Asia News Network): Some...
-
You are a CFO for a mid-size private company that sells premium organic foods. The company seeks to expand and raise additional capital by going public (selling an initial public offering (IPO) of...
-
Pick your favorite brand and conduct a digital media audit for that brand. This involves monitoring which networks the brand is active on, the types of content posted on each network, and the level...
-
Compute Parker Glenn's earnings knowing that $15.55 per hour is paid for Job A and $19.25 per hour is paid for Job B. Of the 48 hours worked during the week, 28 hours were completed for Job A and 20...
-
1 . What are characteristics of a bond and what is the purpose of it ? 2 . What determines the Bond Price? 3 . What is the relationship between Price of a Bond and its return? What if the Price of a...
-
Conduct research and find out how Walmart has performed in the past. What steps is the organization taking now, and/or what additional steps could it take to enhance the long-term sustainability of...
-
A stock costing K100 pays K5 dividend with every possible outcome. The possible outcomes that the stock might sell for at year end and the probability of each are: Year End Price (K) Probability 90...
-
The cost curve for the city water supply is C(Q) = 16 + 1/4 Q2, where Q is the amount of water supplied and C(Q) is the cost of providing Q acre-feet of water. (An acre-foot is the amount of water...
-
What factors might affect whether a union is successful in achieving its desired outcomes in workplace restructuring?
-
Why is it important to have both certification and decertification processes available to workers?
-
When do parties have the option of choosing conciliation, mediation, or arbitration?
-
N = 230, n = 15, k = 200 Compute the mean and standard deviation of the hypergeometric random variable X.
-
N = 60, n = 8, k = 25 Compute the mean and standard deviation of the hypergeometric random variable X.
-
One study showed that in a certain year, airline fatalities occur at the rate of 0.011 deaths per 100 million miles. Find the probability that, during the next 100 million miles of flight, there will...
Study smarter with the SolutionInn App