BU227 Lecture Notes - Lecture 12: Capital Account, Issued Shares, Financial Statement
Document Summary
The number of issued shares may differ from the number of outstanding shares if the. Clearly, the exercise of employee stock options entails a cost to bce that should be measured and reported: canadian companies must estimate and report compensation expense associated with stock options. You have probably seen newspaper headlines announcing a company"s earnings. Notice that those news stories normally report earnings on a per share (eps) basis. Numbers are much easier to compare on a per share basis. When shares are cancelled, the appropriate share capital account is reduced by an amount that reflects the average issuance price per share. If the purchase price is less than the average issuance price, the difference is credited to contributed surplus. In this case, the excess of the purchase price over the issuance price is per share for a total of ,000.
