Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 35ASC 505 EQUITY

PERSPECTIVE AND ISSUES

   Subtopics

   Scope and Scope Exceptions

   Overview

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   Legal Capital and Capital Stock

   Stock Subscriptions

   Additional Paid-in Capital

   Donated Capital

   Retained Earnings

   Dividends

   ASC 505-30, Treasury Stock

   Other Paid-in Capital Issues

   Other Equity Accounts

   ASC 505-50, Equity-based Payments to Nonemployees

   Convertible Preferred Stock

   Mandatorily Redeemable Common and Preferred Stock

   Put Warrant

   Disclosure Requirements

FINANCIAL STATEMENT PRESENTATION

   Stockholders' Equity Section of a Statement of Financial Position

   Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 505 consists of five subtopics:

• ASC 505-10, Overall, provides guidance on issues not addressed in the other ASC 505 subtopics
• ASC 505-20, Stock Dividends and Stock Splits, provides guidance for the recipient and the issuer
• ASC 505-30, Treasury Stock, provides guidance on an entity's repurchase of its own shares of outstanding common stock and the subsequent retirement of those shares
• ASC 505-50, Equity-based Payments to Nonemployees, provides guidance for the issuer and the recipient
• ASC 505-60, Spinoffs and Reverse Spinoffs, provides guidance on the distribution of nonmonetary assets in spinoff transactions.

Scope and Scope Exceptions

Guidance in ASC 505 generally applies to all entities. Specific exceptions follow.

ASC 505-20 does not apply to distribution or issuance ...