7252569-MIdterm-1 (dragged) 48

7252569-MIdterm-1 (dragged) 48 - 3. The corporate form of...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 15-14 LECTURE OUTLINE The material in this chapter is relatively straightforward and can be covered in one or two class sessions. A. Nature of Shareholders' Equity 1. The shareholders' interest in a firm is a residual interest. It can be derived from the following basic accounting equation: assets less liabilities equals shareholders' equity. 2. The two primary sources of equity are: a. Capital contributed by shareholders—share capital and contributed surplus b. Earned—Retained earnings and accumulated other comprehensive income TEACHING TIP Illustration 15-1 can be used to provide an overview of the major components of shareholders' equity that are described in the chapter.
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Unformatted text preview: 3. The corporate form of entity. a. The primary forms of business organization are the proprietorship, the partnership, and the corporation. b. Corporations may be classified as: (1) public sector (2) private sector (a) non-share, e.g., churches, charities, colleges (b) stock (operate for profit and issue shares) (i) privateclosely held (ii) publicshares widely held 1) listed on stock exchange (TSE, NYSE) 2) unlisted or over-the-counter (OTC) 4. Influence of Corporate Law. Federally incorporated companies operate under the provisions of the Canada Business Corporations Act (CBCA). Provincially incorporated companies operate under the provision of the relevant province's business corporations act, and requirements may vary from province to province....
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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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