Chapter 18 Flashcards
shareholder’s equity Equation
Asset-Liabilities
Sources of Shareholder’s Equity
Paid in Capital
Retained Earnings
Treasury Stick
AOCI
Paid-in-Capital
Invested by shareholders, purchase of stock, share based compensation
Treasury Stock
Stock that has been bought back by the company
Accumulated Other Comprehensive Income
Net holding Gains/loses on investment
Gains from amendments to postretirement
Deferred Gains on derivatives
Adjustment from foreign currency translation
Statement of Comprehensive Income
Two components:
Current (over reporting period)
Accumulated
Common Stock
Right to vote. Right to dividends right to share in the distribution of assets
Preemptive Right
Maintain one’s % share of ownership when new shares are issues.
Preferred Shares
Can either recieve dividend first and or have a preference to distribution of assets in event of dissolved
Right of Conversion
Can converse preferred to common
Participating
Allow preferred shareholders to receive additional dividends beyond the stated amount
What does PS to equity and debt
Increase Equity but does not effect Debt
Mandatorily Redeemable PS
Must be reported as a liability
Par Value
“Real” Value of shares. Amount not available for D/E6
Outstanding Shares
Available in stock exchanges to buy
Issued Stock
Still in treasury waiting to become outstanding
Share repurchases
No gains or lose, more of a transactions
PIC-Repurchase
Plug in between PIC_Excess/CS/Cash
Treasury Stock
Contra (Debit Balance)
Retirement
Record cash, remove sotck, par, add PIC SR Plug to RE
Debit Balance RE
Deficit
Declaring D/E
Reduce RE and record liabilities
Date of Record
Specific date when divdend can be declared
Small Stock D?E
Taken from R/E and credited PIC EoP
Stock Split
Induce the pe share market price decline
