Exam 11: Share Capital, Reserves and Share Options Employee Bonus Schemes

For each class of share capital,an entity shall disclose either on the face of the statement of financial position or in the notes:

A statement of changes in equity:

Explain the various possible outcomes when there is a forfeiture of shares,due to non-payment of amounts owing when a call is made.

An effect of a bonus issue to all shareholders is to:

The total market capitalisation of a company after a bonus issue is likely to:

Ordinary shares receive low dividends because they do not perform very well.

Preference shares may be classified as a liability,an equity item,or have features of both.Explain with examples,how to determine such a classification.

Discuss,with examples,how the recognition criteria for assets and liabilities provide the criteria for the recognition of equity.

A company may elect to issues its shares at any price,which will depend on:

Semaphore Plc called for subscriptions for 15 million shares.The issue price per share is €2.50 to be paid in two parts: the first payment of €1.00 is to be made on application and the remaining €1.50 is to be paid within 1 month of allotment.At the end of September,when applications close,applications for 19 million shares have been received.The shares are allotted on 1 October on a pro rata basis with the excess application money to be applied against the amount due on allotment.All amounts on allotment are paid by the due date.What are the accounting entries to record these events?

Which of the following statements correctly describes this journal entry: Cash at bank 30000000 Share capital 30000000 Share options (1 000000 options) 3500000 Share capital 3500000

Shares may be issued for consideration other than cash including:

An individual's views on measurement techniques for assets and liabilities will have a direct impact on the amount recorded in shareholders' funds.

Flag Plc has received applications for 4 million shares during July 2014.The shares are to be issued at a price of £2.75 per share.The 4 million shares are allotted on 15 August 2014.What are the accounting entries required to record these events?

In the case of a share issue being oversubscribed,the common approaches include:

When a rights issue is tradeable it is often referred to as:

Holders of ordinary shares:

A share split is usually funded through retained earnings.

A public issue of shares involves:

The effect of a bonus issue to all shareholders on (a)net asset backing per share,(b)each shareholder's share of net assets and (c)market capitalisation is: