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1. How are proceeds from convertible stock recorded for IFRS 2. How is preferred stock reported for IFRS when it is mandatorily redeemable upon the death of the owner? 3. How is preferred stock reported for IFRS when it is redeemable at the option of issuer? 4. Vidalia Corp issued €š 2 million of convertible bonds at par value. The bond is a five-year issue with interest payable annually at a nominal interest rate of 4%. Each bond has a face value of €š1000 is convertible at any time up to maturity into 250 ordinary shares. At the date of issue, the prevailing rate for similar debt without convertible options is 6% and the fair value of Vidalia Corp Stock is €š3. How will the bond be recorded for IFRS and US GAAP? 5. Which of the following financial instruments would be classified as liabilities for IFRS? For a private company under US GAAP? For an SEC registrant? 6. Software Tycoons has issued $1 million of preferred stock that is redeemable if, and only if, the prime interest rate falls below 2.5%? How will the preferred stock be reported for US GAA, IFRS and the SEC? What could occur to eliminate difference between reporting US GAAP and IFRS? 7. Smith and Colbert Inc, issued $1 million of convertible bonds at par value on June 30th, 2009. The bonds are convertible at a conversion price of $10 per share (holder would receive 10000 shares of Smith and Colbert, Inc. common stock upon conversion). The fair value of the company‚s stock at the commitment date s $12. Interest is paid at a nominal annual interest rate of 6% over three years of the bonds. The current prevailing rate is 9%. How would the amount be allocated between liabilities and equity on the June 30, 2009 financial statements for US GAAP and IFRS.

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