The costs of legal, promotional, and accounting services necessary to effect the sale of shares are referred to as share issue costs. How are these costs recorded? Compare this approach to the way debt issue costs are recorded.

Q: How is the investor’s share of gross profit on intra-entity sales calculated? Under the equity…

A: The share of investor is calculated in the following manner in an intra-entity sale: Investor's…

Q: If the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: The question is related to IFRS 2 Share based payment.

Q: The corporation's own stock that has been issued and then bought back by the company is referred to…

A: Definition:   Definition:   Common stock: These are the ordinary shares that a corporation issues…

Q: Explain how underwriting costs and accounting and legal fees associated with the issuance of stock…

A: Underwriting:   A process of providing guarantee to the issuing company to compensate in case of…

Q: When an entity issues a financial instrument, it has to determine its classification either as debt…

A: The financial instrument is a contractual agreement of cash inflows and inflows. If it is not right…

Q: Is Share Dividends qualify as Revenue?

A: If the entity is in the business of buying and selling shares and securities then share dividends…

Q: What is book value per share and how does the corporation compute for the book value for each class…

A: Shares can be categorized mainly in two class one is equity or ordinary shares and other one is…

Q: What is the controlling interest percentage for a consolidated accounting financial statement?

A: Consolidated financial statements: These financial statements are consolidated financial statements…

Q: When is a statement of shareholders' equity given, what information is included?

A: Statement of shareholders equity is also known as statement of changes in equity. This is a part of…

Q: Discuss different ways in which a firm can pay dividends to its shareholders. Briefly explain the…

A: Cash – This is the most common payment of dividend. In this type payment of actual cash is made from…

Q: What is the related standard for Shareholders Equity?

A: The philippine financial reporting standards: These are the accounting standards and practices used…

Q: Distinguish between oversubscription and undersubscription of shares issued by a company.

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: for the COST OF STOCK or SHARE RIGHTS

A: Required: Compute for the Cost of Stock or Share  Rights allocated from the investment.

Q: ng and Reporting Topic: Issuance of Share Capital

A: Ordinary shares provide share in the ownership of the company  The profit comes through capital…

Q: A share-based payment transaction is one in which an entity receives goods or services and pays for…

A: Share -based payment: These payments are made by the entity when the goods or services are purchased…

Q: Which of the following is a cost associated with an IPO? Interest expenses Out-of-pocket expenses…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Describe the components of shareholders’ equity and explain how they are reported in a statement of…

A: A stockholders’ equity section is prepared by the company to measure the total amount of capital…

Q: If a company uses the equity method to account for an investment in another company, which of the…

A: The equity method is used when a company has ownership in another company of 20% to 50% of the…

Q: (d) Explain and justify the accounting treatment for share dividends and share splits.

A: Share dividend is the form of dividend in which company issue shares as dividend rather than cash.…

Q: remium on issue of shares is a revenue expenditure

A: Premium on issue of shares is not a revenue expenditure.

Q: Explain the accounting for share capital issued for non-cash consideration.

A: The share issue is the most common way in order to arrange funds for the business of the company.…

Q: When the income statement includes discontinued operations, which amounts require per share…

A: Earnings per share: The amount of earnings made available to each common share is referred to as…

Q: If share-based payment transaction provides that the employees have the right to choose the…

A: Ans. A compound financial instrument is one in which where both equity and liability component are…

Q: What are the two primary ways companiesraise common equity?

A: The mix of equity and debt in a business organization is known as the capital structure of the…

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: What is advantges and dis advantge of shares repurchacse to the company

A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…

Q: What other techniques can be applied to compute the intrinsic value of shares of the company?

A: Intrinsic value is the value inherent in the stock of a company based on how well it is expected to…

Q: what are the similarities between paid-in-capital and retained earnings

A: The answer is as fallows

Q: Explain how earnings per share should be computed and how the information should be disclosed in the…

A: Earnings per share: Earnings per share represent the amount of income earned per share of…

Q: Based on which of the following concepts, is share capital account shown on the liability side of a…

A: Business entity concept says that both businessmen and business are separate person. Business has…

Q: Explain the procedures used to actually pay the dividend.

A: Step 1   A dividend is the distribution of the dividend or residual profits to the shareholders on a…

Q: How would a share split affect the amount of total share capital, total shareholder's equity and…

A: Stock split results in division of outstanding shares. Hence, the total number of shares outstanding…

Q: Describe the accounting and reporting for reacquisition of shares.

A: When a company buy back or reacquire its own shares, it is known as treasury stock. It is dependent…

Q: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: At times, companies issue their shares for consideration other than cash. What is the measurement…

A: Issue of common stock for non-cash assets or services: Corporations often issue common stock for the…

Q: When a company pays interest on preferred stock, that activity is usually classified as: a.…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents of…

Q: Discuss the impact of issuance of share dividends to the existing shareholders. Knowledge)

A: A stockholder is a person who owns stock in a company. Stockholders own a portion of the company. If…

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

Q: describe the components of shareholders’ equity

A: Shareholder's equity is calculated as the difference between the company's total assets and the…

Q: When shares are issued in exchange of legal services in order to incorporate an entity, the proper…

A: Company means a form of business where the share holder invest money in business in form of shares…