7252569-MIdterm-1 (dragged) 47

7252569-MIdterm-1 (dragged) 47 - Kieso Weygandt Warfield...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 15-13 treasury shares are reissued for less than acquisition cost, the difference should be debited to any contributed capital from previous treasury share, or repurchase share transactions. If the balance in this account(s) is insufficient, the remaining difference is charged to retained earnings. APPENDIX 15B Financial Reorganization: Accounting for a Financial Reorganization 47. A corporation that has accumulated a large debit balance in retained earnings (deficit) may be permitted (depending on the laws and due process) to enter into a process known as a financial reorganization . When there is a change in control of the corporation and new accounting values can be reasonably determined, the accounting procedure for the financial reorganization will consist of the following steps: a. The balance in the retained earnings (deficit) account is brought up to the date of the reorganization. In addition to closing any open income statement accounts, any
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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