Ernst & Young Senior Executive Interview Questions and Answers for Experienced

Dividend is a distribution of a portion of a company's earnings to its shareholders.

• Dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock.

• It is a way for companies to share their profits with their investors.

• Dividends are typically paid out regularly, such as quarterly or annually.

• The amount of dividend paid to each shareholder is usually determined b...read more

Bonus share is a free additional share given to existing shareholders by a company as a reward for their investment.

• Bonus shares are issued by a company to its existing shareholders at no cost.

• They are given as a reward for the shareholders' investment in the company.

• Bonus shares do not result in any cash inflow for the company.

• They increase the number of outstanding shares, but do not affect the ownership percentage o...read more

Bonus shares are issued by companies to reward shareholders by giving them additional shares at no cost.

• Bonus shares are issued from the company's reserves or profits.

• They are given to existing shareholders in proportion to their current holdings.

• Bonus shares do not increase the value of the company, but they do increase the number of shares outstanding.

• The purpose of issuing bonus shares is to increase liquidity and m...read more

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It is used by companies to prepare and present their financial statements.

• IFRS is designed to provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

• Examples of financial state...read more

IFRS 9, IFRS 15, IFRS 16

• IFRS 9 - Financial Instruments

• IFRS 15 - Revenue from Contracts with Customers

• IFRS 16 - Leases

A bond is a debt security that represents a loan made by an investor to a borrower.

• Bonds are issued by corporations, municipalities, and governments to raise capital.

• They have a fixed interest rate and a maturity date when the principal is repaid.

• Bonds are generally considered less risky than stocks but offer lower potential returns.

• Examples of bonds include U.S. Treasury bonds, corporate bonds, and municipal bonds.

Discount on issuance of bond is treated as an expense and is amortized over the life of the bond.

• Discount on issuance of bond is the difference between the face value of the bond and the amount received by the issuer.

• It is treated as an expense and is amortized over the life of the bond.

• The amortization of the discount reduces the interest expense on the bond.

• For example, if a bond with a face value of $1,000 is issued...read more