BUS 251 Chapter Notes - Chapter 11: Initial Public Offering, Treasury Stock, Share Capital

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

Document Summary

Share capital represents the amount that investors paid for the shares when they were initially issues by the company (original amount)/ Retained earnings represent the assets generated from accumulated earnings of the company that have not been distributed as dividends to shareholders. Accumulated other comprehensive income (aoci) are gains and losses that don"t arise from transactions with third parties and are there for unrealized. They are separated from net income because they are un realized and could results in less or more value than originally thought. Includes: gains/losses on some type of investments, some foreign currency and translation adjustments, gains and losses on complex financial instruments to hedge events. Contributed surplus arises from certain transactions with shareholders involving the sale of repurchase of a company"s shares of the issuance of stock options. Some parts of these transactions don"t fit the definition of share capital or retained earnings and are recorded in the contributed surplus account.