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Session 20A
Equity
Financial Accounting - BUS. 020 - Spring 2015
Equity
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Par value
Additional Paid in Capital
Retained Earnings
Financial Accounting - BUS. 020 - Spring 2015
Comprehensive Income
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Changes in equity other than capital
additions and deletions
Financial Accounting - BUS. 020 - Spring 2015
Treasury Stock
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Cost Method
Repurchase at market price
Reissue at gain…APIC
Reissue at loss…<APIC>, the <RE>
Financial Accounting - BUS. 020 - Spring 2015
Disclosure
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Authorized
Issued
Outstanding
Financial Accounting - BUS. 020 - Spring 2015
Session 20B
Investments
Financial Accounting - BUS. 020 - Spring 2015
Marketable Securities-Current Asset
Classification (C12)
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Readily marketable
Intention to convert to cash
Financial Accounting - BUS. 020 - Spring 2015
Current Marketable Sec.
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Held to maturity
Trading securities
Available for sale
Financial Accounting - BUS. 020 - Spring 2015
Mark to Market--FASB
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Held to maturity…no adj.
Trading securities…adjust to P & L
Avail. For sale…adjust to equity
Financial Accounting - BUS. 020 - Spring 2015
Changing Mkt. Sec.
Classifications
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AFS to Trading
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Trading to AFS
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Recognize unrealized G or L previously
deferred in the equity section
Recognize current unrealized G or L, then
transfer
General rule
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Mark to market first
Address prior deferrals second
Financial Accounting - BUS. 020 - Spring 2015
L/T Equity
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Cost method or mark to market
Equity method
Consolidation
Financial Accounting - BUS. 020 - Spring 2015