BUS 251 Chapter Notes - Chapter 11: Initial Public Offering, Dividend, Retained Earnings

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzell

Document Summary

How your ownership interest is measured and disclosed in the inancial statements. All companies have at least one class of common shares. Good to know how issuance of new shares afects your ownership. Included in the shareholders" equity secion of the statement of inancial posiion: Two main components: share capital and retained earnings. Share capital = amount investors paid for the shares when they were iniially issued by company. Retained earnings = assets generated from the accumulated earnings of the company that have not been distributed as dividends. Other accounts reported on the shareholders" equity secion: o. These normally arise from transacions that revalue certain inancial statement items. This evaluaions are reported ater net income as: other comprehensive income. Aggregated in an account called: accumulated comprehensive income which is a part of shareholders" equity. These transacions that give gains or losses are unrealized they did not result from transacions with third paries.