BU397 Chapter Notes - Chapter 15: Retained Earnings, Share Capital, Corporate Law
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Ifrs refers to common shares as ordinary shares: within each class, each share is equal, each class of share contains certain rights and privileges, the number of shares that are possessed determines the. If the acquisition cost is less than the original value: dr share capital for original value, cr cash for acquired value, cr contributed surplus for difference between the above two. Debits that would affect re: net loss, prior period adjustments, accounting principle changes, cash, property, stock dividends, treasury stocks. Credits that would affect re: net income, prior period adjustment, accounting principle changes, adjustments from financial reorganization. Distribution of profits must be formally approved by the bod. Dividends must be in full agreement with preferences created by the share capital contracts. Management should consider the availability of funds to pay the dividends. Je at the time of declaration: dr retained earnings (or stock dividends declared, cr common shares. If the dividend is declared before its distributed, the.
