Exam 2: Shareholders Equity: Share Capital and Reserves

In respect to the issue of shares by a company, what is an IPO?

Retained earnings are a component of

Use the following information to answer questions 6 to 8. A company's capital consists of 50 000 ordinary shares issued at $2 and paid to $1 per share. On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to $22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to $1.50 for a payment of $1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to $2 000. The company's constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited. -The entry to record the forfeiture of shares is: Learning Objective 2.5 Account for the issue of both par value and no-par shares

A company issued share option is an instrument that gives the holder the right but not the obligation to:

Dividends declared after the balance date but before the financial statements are authorised for issue:

The appropriate account to record any excess proceeds received and retained (not refunded) by a company from an oversubscription to a share offer application, is the:

Which of the following journal entries demonstrates the appropriate accounting treatment for share issue costs?

In relation to an asset revaluation surplus, an entity

Whether a dividend is paid by a company depends on the decisions made by the:

If the balance in a forfeited shares account is refundable to the owners of those shares, then the forfeited shares account is classified as a component of:

When a public share issue is made, the offer comes from:

Which of the following statements is incorrect?

ABC Ltd was registered as a corporation on 1 July 2014. On 4 July 2014, ABC Ltd issued a prospectus offering 100 000 ordinary shares at an issue price of $2.50 each, payable $1.50 on application and $1.00 on allotment. Application closed on 1 August 2014 with the company having received applications for 110 000 shares. The shares were allotted on 15 August 2014, with the over-subscription amount being refunded to unsuccessful applicants. All allotment monies were received by 31 August 2014. Following the allotment the balance in the Share Capital account would be:

Laws in relation to share buy-backs are primarily designed to protect the interests of the company's:

Which of the following does not appear in the Statement of Changes in Equity?

Accounting for share buy-backs is prescribed by

IAS 1 requires that a reconciliation between the carrying amount of each class of contributed equity capital and each reserve at the beginning and end of each period be disclosed in:

In relation to share capital, IAS 1 does not require disclosure in the financial report of:

IAS 1 requires that information in relation to dividends paid or declared during the year be disclosed in:

The amount of the surplus payable to the shareholders whose shares were forfeited is: