After studying this chapter, you should be able to:

  1. 1 Discuss the characteristics of the corporate form of organization.
  2. 2 Identify the key components of equity.
  3. 3 Explain the accounting procedures for issuing shares.
  4. 4 Describe the accounting for treasury shares.
  5. 5 Explain the accounting for and reporting of preference shares.
  6. 6 Describe the policies used in distributing dividends.
  7. 7 Identify the various forms of dividend distributions.
  8. 8 Explain the accounting for share dividends and share splits.
  9. 9 Indicate how to present and analyze equity.

It's a Global Market

As discussed in earlier chapters, we are moving toward one set of global financial reporting standards and one “common language” for financial information. This change will probably lead to more consolidation of our capital markets. To understand how quickly the global financial world is changing, let's examine a few trends occurring on securities exchanges around the world.

In 2007, the New York Stock Exchange (NYSE) merged with Paris-based Euronext, creating the world's first transatlantic securities exchange. Since the merger, NYSE Euronext has grown to be the world's largest exchange group, with over 8,000 listed issuers representing over 30 percent of the world's trading volume. Similarly, NASDAQ, the world's largest electronic securities market, merged with OMX, the Nordic market operator. ...

Get Intermediate Accounting: IFRS Edition, 2nd Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.