n 1 August 2023, Alpha Ltd holds a substantive deep-in-the-money option to acquire the majority of shares in Beta Ltd that is exercisable in 30 days. The earliest date the existing shareholders of Beta Ltd can call a special shareholders’ meeting to change the company’s policies on its relevant activities is in 25 days. Based on these facts only, does Alpha Ltd have the power to control Beta Ltd as of 1 August 2023?Group of answer choicesAlpha Ltd does not have the power to control because Alpha Ltd will suffer a financial penalty if the option is exercised.Alpha Ltd does not have the power to control because the option has not been exercised.Alpha Ltd does not have the power to control because the option only represents potential voting rights, not real voting rights.Alpha Ltd does not have the power to control because the option cannot be exercised before the earliest date that a shareholders’ meeting can be convened to change the company’s policies on relevant activities.

Ribelo Ltd issued 5 000 6% redeemable preference shares on 1 July 2023. The shares are convertible at the option of the holder, with compulsory dividend payments by the issuer. REQUIRED:How will you disclose the preference shares in the annual financial statements of Ribelo Ltd on 31 December 2023?

In January 2021, Petrono Bhd. grants 20,000 share options to each of its 10 topexecutives (total of 200,000 employee share options). The share option will vest onlyif the executive works for the company until 31 December 2023. During 2021, twoexecutives leave the company and based on this, the company estimates that 5executives will leave the company over the 3-year period. During 2022, another oneexecutive leaves the company, and based on this, the company estimates that only 4executives will leave the company over the 3-year period. During 2023, another twoexecutives leave the company. The fair value of each employee share option isdetermined to be RM1.50.You are required to prepare relevant journal entries to record the above transactions.(10 marks)

Pre-emptive right may be denied to a stockholder ____________.a.At the discretion of the board of directorsb.By the articles of incorporation or by amending the articles of incorporationc.By the by-laws of the corporationd.By the vote of 2/3 of all shareholders

Which of the following is not one of the three elements of control according to AASB 10 Consolidated Financial Statements?Group of answer choicesThe ability to use power over the investee to affect the amount of the investor’s returns.Dominating the decision making of the investee.Power over the investee.Exposure, or rights, to variable returns from involvement with the investee.

All shareholders of a corporation have the right to share in the profits of the corporation.Group of answer choicesTrueFalse