Chapter 10- Shareholders' Equity

Chapter 10- Shareholders' Equity - 1 BUSI 1004 INTRODUCTION...

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Unformatted text preview: 1 BUSI 1004 INTRODUCTION TO FINANCIAL ACCOUNTING Chapter 10- Reporting and analyzing shareholders Equity Objectives Describe the characteristics of common and preferred shares. Explain the accounting for shares when issued and repurchased; when dividend is declared and paid. Explain the impact of stock splits. 3 Agenda Composition of Shareholders Equity Contributed capital Preferred shares Common shares Cash dividends Composition of Shareholders Equity on the Balance Sheet Shareholders Equity: Contributed capital Preferred Shares Common Shares Retained earnings Contributed surplus 4 5 Agenda Composition of Shareholders Equity Contributed capital Preferred shares Common shares Cash dividends Preferred shares Typically non-voting shares Carry a fixed dividend per share (as a % of stated value or as a $ amount per share). Dividend is at the discretion of the companys board of directors. Can be cumulative or non-cumulative If cumulative : when a dividend is declared, any dividend in arrears (not declared in previous years) must be paid to preferred shareholders before common shareholders are paid any dividend....
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This note was uploaded on 01/26/2012 for the course BUSI 1004 taught by Professor Ouafasakka during the Spring '11 term at Carleton CA.

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Chapter 10- Shareholders' Equity - 1 BUSI 1004 INTRODUCTION...

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