BUS 251 Chapter Notes - Chapter 11: Treasury Stock, Share Capital, Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

How ownership interest is measured and disclosed in the inancial statements. Why equity inancing is used and what are the advantages/disadvantages. What impact earnings have on share valuaion and how to assess roi. Share capital: amount that the investors paid for shares when they were iniially issued. R/e: assets generated from accumulated earnings that haven"t been distributed as dividends. Gains and losses from revaluaion on some types of investments. Gains and losses on complex inancial instruments to hedge events. Considered to be unrealized don"t result with transacion with third paries. Excluded from net income and r/e, put in other comp income and eventually accumulated. Reported either in separate statement or at botom of stat. of earnings below net earnings. These comprehensive gains and losses afect shareholders" wealth but are not included in r/e. Contributed surplus: arises from certain transacions with shareholders involving sale or repurchaseof company"s shares or issuance of stock opions.