Netted against these contributed capital accounts is

Info icon This preview shows pages 3–5. Sign up to view the full content.

View Full Document Right Arrow Icon
tional paid-in capital. Netted against these contributed capital accounts is treasury S~ the amounts paid to repurchase shares of the issuer's stock from its investors, less proceeds from the resale of such shares. Collectively, these accounts are referred contributed capital (or paid-in capital). 2. Earned capital This section consists of (a) retained earnings, which represent the c tive income and losses of the company, less any dividends to shareholders, and (b) ac lated other comprehensive income (AOCI), which includes changes to equity that have yet impacted income and are, therefore, not reflected in retained earnings.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Module 8 I Equity Recognition and Owner Financing 8-4 non, many companies report an equity account called noncontrolling interest, which the equity of minority shareholders. Exhibit 8.1 illustrates the stockholders' equity section 's balance sheet. Aon's balance sheet reports three equity accounts that make up contrib- capital: common stock, additional paid-in capital, and treasury (repurchased) stock. Aon's sheet also reports two earned capital accounts: retained earnings and accumulated other hensive income (loss). The final component of Aon's stockholders' equity is the noncon- g interest account. Stockholders' Equity from Aon's Balance Sheet Iders' Equity (In millions except per share amounts) December 31, 2010 December 31, 2009 ~ common stock-$1 par value znbuted Authorized:. 750 sha.res (issued: 2010-385.9; 2009-362.7) . Additional paid-in capital . I Treasury stock at cost (shares: 2010-53.6; 2009-96.4) . ~ Retained earnings . Accumulated other comprehensive loss . -----' $ 386 4,000 (2,079) 7,861 (1,917) 8,251 55 $8,306 ~ otal Aon stockholders' equity ................... •..• ....... ......... ntrolling . . t Noncontroiling Interest . Total equity ....................... ............................... $ 363 3,215 (3,859) 7,335 (1,675) 5,379 52 $5,431 contributed and earned capital accounts together for learning purposes; in the Aon balance sheet, these accounts are grouped by positive and balances. alyze contributed capital, earned capital, and noncontrolling interest in order. For each , we provide a graphic that displays the part of stockholders' equity in the balance sheet ed by the discussion of that section. ~~LYZING CONTRIBUTED CAPITAL ibuted capital represents the cumulative cash inflow that the company has received from the of various classes of stock, less the net cash that it has paid out to repurchase its stock from zaarket. The contributed capital of Aon is highlighted in the following graphic. olders' Equity (In millions except per share amounts) December 31, December 31, 2010 2009 on stock-$1 par value Authorized: 750 shares ed:2010--385.9;2009--362.7) _.. - -onal paid-in capital. .................................... •.. ry stock at cost (shares: 2010-53.6; 2009--96.4) . earnings ........................................ ..... ulated other comprehensive loss _ . - - Aon stockholders' equity _ ...................... •.. ntrolling interest _ _ . - - equity ........................ ........................... $ 386 4,000 (2,079) 7,861 (1,917) 8,251 55 $8,306 $ 363 3,215 (3,859) 7,335 (1,675) 5,379 52 $5,431 10, Aon's contributed capital consists of par value and additional paid-in capital for the -9 million shares of its common stock that Aon has issued. Its contributed capital is reduced - e cost of treasury stock for the 53.6 million shares that Aon has repurchased.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern