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
