{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Student Notes, Equity(18)

To deliver cash or another financial instrument to

Info iconThis preview shows pages 40–44. Sign up to view the full content.

View Full Document Right Arrow Icon
to deliver cash (or another financial instrument) to the financial instrument) to the holder holder . Distinction between Debt and Equity for Preferred Stock US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS
Background image of page 40

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

View Full Document Right Arrow Icon
Chapter 18-41 Accumulated other Accumulated other comprehensive income: comprehensive income: Net gains (losses) on Net gains (losses) on investment investment ― AOCI. AOCI. Net gains (losses) foreign Net gains (losses) foreign currency translation — currency translation — AOCI. AOCI. Fair value adjustments not Fair value adjustments not permitted. permitted. Retained earnings. Retained earnings. Total shareholders’ equity. Total shareholders’ equity. Presented after liabilities Presented after liabilities Reserves: Reserves: Investment revaluation Investment revaluation reserve. reserve. Translation reserve. Translation reserve. Revaluation reserve. Revaluation reserve. Retained earnings. Retained earnings. Total equity. Total equity. Often presented before liabilities. Often presented before liabilities. Terminology Differences US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS
Background image of page 41
Chapter 18-42 Ratio shows how many dollars of net income the company earned for  each dollar invested by the owners. Analysis Net income – Preferred dividends Average common stockholders’ equity   Rate of Return on Common Stock Equity  = Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity
Background image of page 42

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

View Full Document Right Arrow Icon
Chapter 18-43 It is important to some investors that the payout be sufficiently high  to provide a good yield on the stock. Analysis Cash dividends Payout Ratio  = Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Net income – Preferred dividends
Background image of page 43
Chapter 18-44 The amount each share would receive if the company were liquidated  on the basis of amounts reported on the balance sheet. Analysis Common stockholders’ equity Book Value Per Share  = Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Outstanding shares
Background image of page 44
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page40 / 44

to deliver cash or another financial instrument to the...

This preview shows document pages 40 - 44. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online