Exam 13: Share Capital and Reserves

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

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

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:

AASB 101 Presentation of Financial Statements requires the following items to appear on the face of the statement of changes in equity I The net amount of cash from the issue of any securities during the period II The cumulative effect of changes in accounting policy and the correction of errors III Each item of income or expenses that are required to be recognised directly in equity IV Profit or loss for the period

AASB 101 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:

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

The bonus issue of shares has the following impact on the equity of a company:

Retained earnings are a component of:

Gains and losses on available-for-sale financial assets are recognised directly in equity until the financial asset is derecognised. At this time the cumulative gain or loss previously recognised is:

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:

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

In relation to share capital, AASB 101 does not require disclosure in the financial report of:

AASB 101 requires that information in relation to dividends paid or declared during the year be disclosed in:

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 reissue of forfeited shares is:

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

Accounting for share buy-backs is prescribed by:

Which of the following does not appear in the statement of changes in equity?

Which of the following is not a reason that companies may undertake a share buy-back?

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:

For-profit companies may be: I Unlimited II Listed III Limited by guarantee IV No-liability