Podcast
Questions and Answers
What happens to the retained earnings account immediately after a quasi-reorganization?
What happens to the retained earnings account immediately after a quasi-reorganization?
- It remains the same as it was before
- It has a debit balance equal to the writedown of the assets
- It is frozen and dated and subsequent transactions will be shown separately
- It has a zero balance (correct)
When shares with par value are sold, where are the proceeds credited?
When shares with par value are sold, where are the proceeds credited?
- Income
- Retained earnings
- Share premium
- Share capital account to the extent of the par value of the shares issued (correct)
What is the basis for measuring shares issued for a noncash consideration?
What is the basis for measuring shares issued for a noncash consideration?
- Fair value of the shares issued (correct)
- Fair value of the noncash consideration received
- Carrying amount of the noncash consideration received
- Par value of the shares issued
What is the initial measurement of shares issued to extinguish a financial liability?
What is the initial measurement of shares issued to extinguish a financial liability?
What is the least appropriate basis for recording a transaction when shares are issued for services?
What is the least appropriate basis for recording a transaction when shares are issued for services?
When shares without par value are sold, where is the excess proceeds over stated value credited?
When shares without par value are sold, where is the excess proceeds over stated value credited?
Where would a gain from retirement of treasury shares be credited?
Where would a gain from retirement of treasury shares be credited?
What would be debited in case of a loss on retirement of treasury shares?
What would be debited in case of a loss on retirement of treasury shares?
What is a possible result of treasury share transactions?
What is a possible result of treasury share transactions?
How should deposits on subscription to a proposed increase in share capital be reported?
How should deposits on subscription to a proposed increase in share capital be reported?
What is true concerning subscriptions receivable from sale of share capital?
What is true concerning subscriptions receivable from sale of share capital?
How should transaction costs directly attributable to the issuance of new shares be treated?
How should transaction costs directly attributable to the issuance of new shares be treated?
What is the correct treatment of costs related to the stock market listing of shares?
What is the correct treatment of costs related to the stock market listing of shares?
What is not included in transaction costs that are directly attributable to the issuance of new shares?
What is not included in transaction costs that are directly attributable to the issuance of new shares?
How should joint costs related to the concurrent listing and issuance of new shares, and listing of old existing shares be treated?
How should joint costs related to the concurrent listing and issuance of new shares, and listing of old existing shares be treated?
When collectibility is reasonably assured, how should the excess of the subscription price over the stated value of the no-par subscribed share capital be recorded?
When collectibility is reasonably assured, how should the excess of the subscription price over the stated value of the no-par subscribed share capital be recorded?
What account or accounts should be debited when treasury shares are purchased for more than par value?
What account or accounts should be debited when treasury shares are purchased for more than par value?
What is the correct treatment of costs related to the public offering of shares?
What is the correct treatment of costs related to the public offering of shares?
What is a legal restriction related to profit distribution?
What is a legal restriction related to profit distribution?
What is the primary purpose of a quasi-reorganization?
What is the primary purpose of a quasi-reorganization?
How are carrying amounts measured in a quasi-reorganization?
How are carrying amounts measured in a quasi-reorganization?
What is the purpose of using equity reserves under international accounting standards?
What is the purpose of using equity reserves under international accounting standards?
What is a consequence of a quasi-reorganization?
What is a consequence of a quasi-reorganization?
What is a condition for distributing capital from a donated asset?
What is a condition for distributing capital from a donated asset?
What happens to asset and shareholders' equity, respectively, as a result of a share split?
What happens to asset and shareholders' equity, respectively, as a result of a share split?
What happens to share premium and retained earnings, respectively, as a result of a share split?
What happens to share premium and retained earnings, respectively, as a result of a share split?
What does the term 'residual owner' mean in relation to shareholders?
What does the term 'residual owner' mean in relation to shareholders?
Who are the residual interest holders in a corporation?
Who are the residual interest holders in a corporation?
What are treasury shares?
What are treasury shares?
Which of the following is not a method that may be used to account for treasury shares?
Which of the following is not a method that may be used to account for treasury shares?
