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The share premium and the revaluation reserve are both revenue related, however the
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- Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.Which of the following is not an undistributable reserve? A. Share premium account B. Capital redemption reserve C. Unrealised profits D. Accumulated realised profitsIs there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence.
- How are paid-in-capital and retained earnings: Similar? Different?Under IFRS, the amount of capital received in excess of par value would be credited to: a. Retained Earnings. b. Contributed Capital. c. Share Premium. d. Par value is not used under IFRS.For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
- Contributed capital does not include a. Preference shares b. Share premium on preference shares c. Capital accumulated by retention of earnings d. Ordinary sharesAnswer the following questions correctly. 1.Explain the accounting for the issuance of: a. Par value share b. No-par value share 2. Explain the accounting for share capital issued for noncash considerationswhat are the similarities between paid-in-capital and retained earnings
- When the equity feature of a compound instrument is exercised, the related share premium is O A. transferred directly to retained earnings B. transferred to profit or loss c. transferred within equityWhy is the distinction between paid-in capital andretained earnings important?Which of the following would result from watered shares? overstated capital understated assets overstated liabilities understated liabilities
