IFRS16-15 The financial statements of Marks and Spencer plc (M&S) are available
ID: 2426140 • Letter: I
Question
IFRS16-15 The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marksand-Spencer-Annual-report-and-financial-statements-2012.pdf.
Instructions
Refer to M&S’s financial statements and the accompanying notes to answer the following questions.
(a) Under M&S’s share-based compensation plan, share options are granted annually to key managers and directors.
(1) How many options were granted during 2012 under the plan?
(2) How many options were exercisable at 31 March 2012?
(3) How many options were exercised in 2012, and what was the average price of those exercised?
(4) How many years from the grant date do the options expire?
(5) To what accounts are the proceeds from these option exercises credited?
(6) What was the number of outstanding options at 31 March 2012, and at what average exercise price?
(b) What number of diluted weighted-average shares outstanding was used by M&S in computing earnings per share for 2012 and 2011? What was M&S’s diluted earnings per share in 2012 and 2011?
(c) What other share-based compensation plans does M&S have?
Explanation / Answer
Answer:1) There were totally 20.10 Million options granted and 139.80 Million options were exercisable during the year 2012. Similarly, there were totally, nil options granted and 111.50 Million options exercisable during the year 2013.
These details were extracted from Page No. 92 under the sub-category “ Stock Option Awards” continuing from page no. 91.
Answer:2) Following table presents all the details those were extracted from Page No.94 under the Category Note 23: Earnings per Share:
Answer:3) There are two types of Equity-based information plans Intel does have namely 2006 Equity Incentive Plan & 2006 Stock Purchase Plan.
All these details were extracted from the Page No.112 under the Sub-Category “Equity Compensation Plan Information”
Answer:4)The two investments Intel reported in 2013 are Marketable Equity Securities and Other Long Term Investments.
Answer:5) Intel determines fair value of their “non-marketable equity investments using the market and income approaches”
Answer:6) Intel uses derivative financial instruments to “manage currency exchange rate and interest rate risk, and, to a lesser extent, equity market risk and commodity price risk.”