Wiley 2022 Interpretation and Application of IFRS Standards

16SHAREHOLDERS' EQUITY

• Introduction
• Definitions of Terms
• Recognition and Measurement
• Presentation and Disclosure
  • Types of Shares
  • Presentation and Disclosures Relating to Share Capital
  • Presentation and Disclosures Relating to Other Equity
• Classification Between Liabilities and Equity
  • Puttable Instruments
  • Compound Financial Instruments
• Share Issuances and Related Matters
  • Additional Guidance Relative to Share Issuances and Related Matters
    • Accounting for the issuance of shares
    • Issuance of share units
    • Share subscriptions
    • Distinguishing additional contributed capital from the par or stated value of the shares
    • Donated capital
  • Compound and Convertible Equity Instruments
  • Retained Earnings
  • Dividends and Distributions
    • Cash dividends
    • Liquidating dividends
    • Taxation impact
  • Accounting for Treasury Share Transactions
  • Members’ Shares in Co-operative Entities
• Future Developments
• Examples of Financial Statement Disclosures
• US GAAP Comparison

INTRODUCTION

The Conceptual Framework defines equity as the residual interest in the assets of an entity after deducting all its liabilities. This definition applies to all reporting entities. For many preparers of financial statements, equity is likely to comprise amounts that are attributable to issued share capital and total retained earnings, often described as an entity's reserves.

To the holders of equity, equity represents an interest in the net assets (i.e., assets less liabilities) of the entity. It is not a claim on those ...