companyaccountingFinancingcompanyoperations幻灯片.pptVIP

Chapter 2 Financing company operations Prepared by Emma Holmes;Issue of shares;Key features of share capital;Accounting for share issues;Accounting for share issues;Accounting for share issues;Issue of shares – Payable in full on application (Example 1);Issue of shares – Payable in full on application (Example 1);Issue of shares – Payable in full on application (Example 1);Issue of shares – Deposit on application, balance on allotment (Example 2);Issue of shares – Deposit on application, instalment on allotment, balance on call (Example 3);Issue of shares – Deposit on application, instalment on allotment, balance on call (Example 3);Issue of shares – Deposit on application, instalment on allotment, balance on call (Example 3);Oversubscription;Oversubscription (Example 4);Oversubscription (Example 4);Forfeiture of shares;Forfeiture of shares;Forfeiture of shares (Example 5);Forfeiture of shares (Example 5);Share issue and formation costs;Share capital - summary;Subsequent issues of shares;Subsequent issues of shares;Share options;Share options (Example 6);Share options (Example 6);Share options (Example 6);Share options (Example 6);Such shares either: Give the holder the right to be repaid his/her capital Or Give the company the right to repay the capital Main issue is the classification of such shares Are they equity, liabilities or a combination of both?;Shares can be redeemed from: Proceeds of a fresh issue of shares 2. Retained earnings Additionally, the company’s constitution may specify payment of a redemption premium which is paid from profit On redemption the shares are cancelled and cannot be reissued ; Dr Share Capital - Preference $x Cr Shareholders redemption $x Transfer of preference capital to redemption account Dr Shareholders redemption $x Cr Cash $x Redemption of preference shares Dr Cash/ Retained earnings $x Cr Share Capital - Ordinary $x Receipt of cash on issue of new shares ;Redeemable preference shares with the following cha