F1 Flashcards
Types of dividends
cash, property, scrip, liquidating, stock
Weighted avergage for EPS
prospective: issuance, buyback
retrospective: stock dividends, stock splits, reverse stock splits
Small stock dividend
(<20-25%)
use FMV (decrease RE, increase CS & APIC)
Large stock dividend
(>20-25%)
use par value (decrease RE, increase CS)
Stock splits
reduce par value (memo entry)
Property dividend
use FV of property/assets transferred
must be restated to FV first for G or L in I/S
Donated stock
does not change SH equity, use cost method (FMV)
Dr. Donated TS, Cr. APIC
Retroactive adjustments for EPS
stock dividends, stock splits, and reverse stock splits
Issuing stock for services
record at MV of stock
SEC Reporting Deadline: Form 10-K
60 days lg. accelerated; 75 days accelerated filers; 90 days all others
annual
lg accel: MV of outstanding common equity of $700 mil+; accel: $75-700 mil
SEC Reporting Dealine: Form 10-Q
40 days larger accelerated and accelerated; 45 days for all others
quarterly
lg accel: MV of outstanding common equity of $700 mil+; accel: $75-700 mil
SEC Reporting Dealine: Form 8-K
4 business days to file
Treasury stock retirement
Dr. CS, Cr. TS
Donated stock
Dr. TS (FMV), Cr. APIC (FMV)
Gains and losses resulting from foreign exchange transactions that are an “extension” of the parent’s domestic operations are included
Component of income from continuing operations
When is a property dividend valued
the declaration date
must also recognize gain/loss based on original cost
Form 10-K Financial Statements
- BS for 2 most recent fiscal years
- income statement for 3 fiscal yeats preceding most recently audited BS
- statement of CF for three preceding FYs
- Changes in owners equity for three fiscal years
Form 10-Q FS
- BS: as the end of the most recent qtr. and as of the end of the preceding FY
- IS: for most recent qtr.
- CF: for the period between the end of the preceding FY and the end of the most recent qtr.
