Unformatted text preview: allocate proceeds among the different securities. 4. Noncash Share Transactions. When shares are issued for services or property other than cash, the property or services should be recorded at either their fair market value or the fair market value of the shares issued, whichever is more clearly determinable. 5. Costs of Issuing Shares. These costs are treated as a reduction of the amounts paid in, as an organization cost, or charged directly against retained earnings. Share issue costs are identified as capital transactions in Handbook Section 3610, which recommends that these charges be excluded from the determination of net income. D. Reacquisition of Shares C o r p o r a t i o n s m a y b u y t h e i r o w n s h a r e s f o r a variety of reasons, including meeting employee stock option contracts, increasing earnings per share, meeting the share needs of a merger, buying out a particular interest, or satisfying claims of a dissenting shareholder....
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- Spring '10
- Accounting, Employee stock option, Issuance of Shares, Noncash Share Transactions