Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 15-6 17. Where an entity advances money to its employees or officers for the purpose of purchasing shares of company stock, it is common practice to deduct the remaining loan balances from the share capital reported within shareholders' equity. 18. The costs associated with issuing share capital may be written off against amounts paid in, capitalized as organization costs and amortized against future earnings, or charged directly against retained earnings. Share issue costs are identified as capital transactions (as opposed to operating transactions) in Handbook Section 3610, which recommends that these charges be excluded from the determination of net income. 19. The CBCA and various provincial acts permit a corporation to redeem its shares, provided such an action would not render the company insolvent. The CBCA then requires that such shares be cancelled and restored to the status of authorized but unissued shares if
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Dividend, Generally Accepted Accounting Principles, CBCA