O'Reilly logo

IFRS For Dummies by Steven Collings

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 9

Accounting for Equity

In This Chapter

arrow Dishing out share capital

arrow Paying more than shares are worth

arrow Getting savvy with share-based payments

arrow Rifling through retained earnings

arrow Handling the revaluation reserve

Equity is the residual value left over when you take all other costs into consideration (a bit like what’s left after you work out your bills for the month and take them off your monthly salary). Equity, in the context of companies, works on exactly the same principle: from the viewpoint of a company, equity is the shareholders’ funds.

Under IFRS, the statement of financial position has a section dedicated to equity, also known as shareholders’ funds. In this chapter, I examine the various components of the equity section. The equity section of a company’s statement of financial position often comprises:

check.png Share capital

Share premium account

Revaluation reserve

Retained ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required