Redemption of shares Redeemable shares (可贖回股份) Shares issued with redemption terms at a specified future date Share redemption/buy-back () ▶ 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.)

Redemption of shares Redeemable shares (可贖回股份) Shares issued with redemption terms at a specified future date Share redemption/buy-back () ▶ 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.)

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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Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset.
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At the date of financial statements, ordinary shares issued would exceed ordinary shares outstanding as a result of the a declaration of share bonus b payment in full of subscribed shares c purchase of treasury shares d. declaration of a share split Quasi-reorganization effected thru revaluation of Property, plant and equipment a.eliminates the deficit by applying the revaluation surplus only up to the extent of the deficit b.eliminates the deficit by applying the share premium balance of a class of share only up to the extent of the deficit. c.eliminates the deficit up to the value of the revaluation surplus d.eliminates the deficit up to the value of the share premium from a class of share.
Sale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury shares to be reported as other expense b. Retained earnings and then additional paid in capital from treasury share transactions c. Additional paid in capital from treasury share transactions and then retained earnings d. Share premium from original issuance, additional paid in capital from treasury share transactions and then retained earnings
The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares issued over the carrying amount of the preference shares being converted should be Select one: O a. reflected currently in other comprehensive income. O b. reflected currently in income. treated as a direct reduction of retained earnings. O c. O d. treated as a prior period adjustment.
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…
Answer the question below and provide an explanation.
Which statement is true concerning retirement of treasury shares. * Retired shares can be reissued at a future date Shares are retired when reacquired Retired shares are those that have been reacquired and cancelled Retired shares remain in the books of accounts of an entity The original issuance price is equal to: Par value only Related Share Premium only Par value less Related Share Premium Par value plus Related Share Premium
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5. Which of the following is incorrect regarding inclusion or shares in the weighted average number of shares? d. Ordinary shares issued as a result of the conversion of a debt instrument to ordinary shares are included from the date that interest ceases to accrue. b. Ordinary shares issued in exchange for the settlement of a lnability of the entity are included from the settlement date. C. Ordinary shares issued for the rendering of services to the entity are included as the services are rendered. d. Ordinary shares issued in exchange for cash are included when cash is received. 6. The weighted-average number of shares outstanding during the period and for all the periods presented (other than the conversion of potential ordinary shares) shall be adjusted for a. Any change in the number of ordinary shares without a change in resources. b. Any prior-year adjustment. C. Any new issue of shares for cash. d. Any convertible instruments settled in cash. 7. If a bonus issue occurs between…
When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capitalb. fair market value of the share capital on the date of recordc. fair market value of the share capital on the date of declarationd. fair market value of the share capital on the date of distribution