Chapter - Equity. After completing this chapter you should be able to: Discuss the characteristics of the corporate form of organization, identify the key components of stockholders’ equity, explain the accounting procedures for issuing shares of stock, describe the accounting for treasury other contents. | Volume 2 C H A P T E R 15 EQUITY Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Discuss the characteristics of the corporate form of organization. Identify the key components of equity. Explain the accounting procedures for issuing shares. Describe the accounting for treasury shares. Explain the accounting for and reporting of preference shares. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large share dividends, and for share splits. Indicate how to present and analyze equity. Learning Objectives Issuance of shares Reacquisition of shares The Corporate Form Equity Preference Shares Dividend Policy Presentation and Analysis Corporate law Share system Variety of ownership interests Features Accounting for and reporting preference shares Financial condition and dividend distributions Types of dividends Shares split Disclosure of restrictions Presentation Analysis Equity Three primary forms of business organization The Corporate Form of Organization Proprietorship Partnership Corporation LO 1 Discuss the characteristics of the corporate form of organization. Special characteristics of the corporate form: Influence of state corporate law. Use of the share system. Development of a variety of ownership interests. State Corporate Law The Corporate Form of Organization LO 1 Discuss the characteristics of the corporate form of organization. Corporation must submit articles of incorporation to the appropriate governmental agency for the country in which incorporation is desired. General Motors - incorporated in Delaware. . Steel - incorporated in New Jersey. Accounting for equity follows the provisions of the business incorporation act of each government. Share System The Corporate Form of Organization LO 1 Discuss the characteristics of the corporate form of organization. In the absence | Volume 2 C H A P T E R 15 EQUITY Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Discuss the characteristics of the corporate form of organization. Identify the key components of equity. Explain the accounting procedures for issuing shares. Describe the accounting for treasury shares. Explain the accounting for and reporting of preference shares. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large share dividends, and for share splits. Indicate how to present and analyze equity. Learning Objectives Issuance of shares Reacquisition of shares The Corporate Form Equity Preference Shares Dividend Policy Presentation and Analysis Corporate law Share system Variety of ownership interests Features Accounting for and reporting preference shares Financial condition and dividend distributions Types of dividends
