SHAREHOLDERS' EQUITY
Net changes reserve
It includes those items treated as either additions or deductions from the stockholders' equity.
shareholders' Equity
It is the residual interest of owners in the net assets of a corporation measured by the excess of assets over liabilities.
Contributed Capital
Represents the amount invested or contributed by owners. It is composed of share capital and share premium. Also known as Paid-in Capital.
Reserves
generally includes stockholders' equity items other than the total par or stated value of the capital stock and the unrestricted retained earnings.
Revaluation reserve/surplus/asset revaluation reserve
increase of the recorded amount in the value of plant assets as a result of their appraisal in relation to their current replacement cost
appropriated retained earnings
it is not to be declared as dividends. It is also called retained earnings reserve.
methods of accounting for share capital
memorandum entry method and journal entry method.
Share premium reserve/additional paid-in capital
the paid-in capital in excess of the par value or stated value, excess of the sales proceeds of treasury stock over cost, donated capital and other premiums in relation to the retirement of stocks.
Share capital
the paid-in capital representing the amount of the total par of stated value of the shares issued. It represents the portion of authorized capital stock that has been fully paid.
legal capital
the portion of paid-in capital which cannot be returned to stockholders in any form (cash, property or stock dividends) during the lifetime of the corporation.
subscribed share capital
the portion of the share capital that an investor agreed to purchase. This portion of capital stock is not yet issued because it may only be partially paid. This item is added to the share capital.
Subscription Receivable
the unpaid portion of the subscription price. It is presented as current asset of collectible currently otherwise, it is deducted from subscribed share capital.
true
true or false. the legal capital of a capital stock with par value is the aggregate amount at par value of the shares issued and subscribed.
memorandum method
a method of accounting share capital when the corporation is authorized to issue shares of stocks.
Ordinary share capital
an equity instrument that is subordinate to all other classes of equity instruments.
Retained earnings or Accumulated Profits
Account used to record the accumulated corporate periodic earnings since the inception of the enterprise.
preference share capital
An equity instrument that give the holder certain preferences over the ordinary shareholders. Such preference may include preference over dividends and preference over assets.
