FAR - Statement of Changes in Equity

Question 1

The SEC requires how many years of changes in the Statement of Changes in Owners’ Equity?

Answer 1

3

Question 2

When is the conversion of bonds reported on the Statement of Changes in Owners’ Equity?

Answer 2

When it translates into contributed capital.

Question 3

What are the elements of the Statement of Change in Owner’s Equity?

Answer 3

1. Retained earnings
2. Accumulated other comprehensive income.
3. Common stock.
4. Additional paid-in capital.
5. Treasury stock.

Question 4

Is the Statement of Changes in Owners’ Equity required by GAAP?

Answer 4

No.

Question 5

What is the calculation for the average issue price of common stock during a period?

Answer 5

Sum of the par value and the additional paid-in capital. First determine number of shares issued by the increase in common stock/par value. Then divide the additional paid-in capital by the shares issued to determine the average issue price. Add the par value to the additional paid-in capital per share.