tailieunhanh - Lecture Intermediate accounting (IFRS 2nd edition): Chapter 15 - Kieso, Weygandt, Warfield

Chapter 15 – Equity. After completing this chapter you should be able to: Discuss the characteristics of the corporate form of organization, identify the key components of stockholders’ equity, explain the accounting procedures for issuing shares of stock, describe the accounting for treasury stock. | PREVIEW OF CHAPTER Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 15 Explain the accounting for and reporting of preference shares. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for share dividends and share splits. Indicate how to present and analyze equity. After studying this chapter, you should be able to: Equity 15 LEARNING OBJECTIVES Discuss the characteristics of the corporate form of organization. Identify the key components of equity. Explain the accounting procedures for issuing shares. Describe the accounting for treasury shares. Three primary forms of business organization. Proprietorship Partnership Corporation Special characteristics of the corporate form: Influence of corporate law. Use of the share system. Development of a variety of ownership interests. CORPORATE FORM OF ORGANIZATION LO 1 Corporate Law Corporation must submit articles of incorporation to the appropriate governmental agency for the country in which incorporation is desired. Governmental agency issues a corporation charter. Advantage to incorporate where laws favor the corporate form of business organization. CORPORATE FORM OF ORGANIZATION LO 1 Share System In the absence of restrictive provisions, each share carries the following rights: To share proportionately in profits and losses. To share proportionately in management (the right to vote for directors). To share proportionately in assets upon liquidation. To share proportionately in any new issues of shares of the same class—called the preemptive right. CORPORATE FORM OF ORGANIZATION LO 1 Variety of Ownership Interests Ordinary shares represent the residual corporate interest. Bears ultimate risks of loss. Receives the benefits of success. Not guaranteed dividends nor assets upon dissolution. Preference shares are created by contract, when shareholders’ sacrifice certain rights in return for other rights or privileges, . | PREVIEW OF CHAPTER Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 15 Explain the accounting for and reporting of preference shares. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for share dividends and share splits. Indicate how to present and analyze equity. After studying this chapter, you should be able to: Equity 15 LEARNING OBJECTIVES Discuss the characteristics of the corporate form of organization. Identify the key components of equity. Explain the accounting procedures for issuing shares. Describe the accounting for treasury shares. Three primary forms of business organization. Proprietorship Partnership Corporation Special characteristics of the corporate form: Influence of corporate law. Use of the share system. Development of a variety of ownership interests. CORPORATE FORM OF ORGANIZATION LO 1 Corporate Law Corporation must submit articles of incorporation to the .