Redemption of shares Redeemable shares (可贖回股份) ►Shares issued with redemption terms at a specified future date Share redemption/buy-back (0) The new Companies Ordinance allows greater flexibility for the share redemption or buy-back ▶ The payment for the redemption may be made: ▶ Out of proceeds of fresh issue of new shares ▶ Out of company's distributable profits Out of capital, following procedures prescribed in the new Companies Ordinance (New Co. Ord.) Accounting for share redemption Procedures Shares to be redeemed (say preference share capital) On redemption by cash Journal Entries Dr. Preference share capital Cr. Preference share capital redemption reserve Dr. Preference share capital redemption reserve Cr. Cash Net effect: Dr. Preference share capital Cr. Bank XX XX

Redemption of shares Redeemable shares (可贖回股份) ►Shares issued with redemption terms at a specified future date Share redemption/buy-back (0) The new Companies Ordinance allows greater flexibility for the share redemption or buy-back ▶ The payment for the redemption may be made: ▶ Out of proceeds of fresh issue of new shares ▶ Out of company's distributable profits Out of capital, following procedures prescribed in the new Companies Ordinance (New Co. Ord.) Accounting for share redemption Procedures Shares to be redeemed (say preference share capital) On redemption by cash Journal Entries Dr. Preference share capital Cr. Preference share capital redemption reserve Dr. Preference share capital redemption reserve Cr. Cash Net effect: Dr. Preference share capital Cr. Bank XX XX

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 3C

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Which statement is incorrect regarding equity-settled share-based payment transactions? A. the issuance of shares to employees with say, a two year vesting period is considered to relate to services over the vesting period. B. the issuance of shares or rights to shares requires an increase in a component of equity C. the fair value of a share-based payment transaction is determined at the date of exercise. D. the issuance of fully vested shares, or rights to shares, is presumed to relate to past service, requiring the full amount of the grant-date fair value to be expensed immediately. Provided the specified vesting conditions, if any, are met, share-based payment arrangement is an agreement between the entity and another party that entities the other party to receive A. equity instruments of the entity or another group entity B. none of the choices C. receives goods or services from the supplier of those goods or services in a…
What is redeemable shares? What is the dfferences between ordinary shares? What is share redemption. What is buy back?
Putt Corporation acquired 70 percent of Slice Company's voting common stock on January 1, 20X3, for $158,900. Slice reported common stock outstanding of $100,000 and retained earnings of $85,000. The fair value of the noncontrolling interest was $68,100 at the date of acquisition. Buildings and equipment held by Slice had a fair value $25,000 higher than book value. The remainder of the differential was assigned to a copyright held by Slice. Buildings and equipment had a 10-year remaining life and the copyright had a 5- year life at the date of acquisition. Trial balances for Putt and Slice on December 31, 20X5, are as follows: Putt Corporation Slice Company Debit Credit Debit Credit Cash $ 15,850 $ 58,000 Accounts Receivable 65,000 70,000 Interest & Other Receivables 30,000 10,000 Inventory 150,000 180,000 Land 80,000 60,000 Buildings & Equipment 315,000 240,000 Bond Discount 15,000 Investment in Slice Company 157,630 Cost of Goods Sold 375,000 110,000 Depreciation Expense 25,000…
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Answer the question below and provide an explanation.
How much is the shareholder's equity?
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Subscribed Share Capital shall be presented as an addition to the total Shareholders’ Equity. a reduction from the total Shareholders’ Equity if not readily collectible. a current asset if collectible within twelve months. a reduction from the total Shareholders’ Equity.
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