Wiley GAAP 2021, 2nd Edition

35ASC 505 EQUITY

1. Perspective and Issues
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Overview
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Legal Capital and Capital Stock
      1. Preferred Stock
   2. Convertible Preferred Stock
      1. Example of Convertible Preferred Stock
      2. Issuance of Shares
      3. Example—Treatment of Par and No‐par Stock in a Stock Sale
      4. Shares Issued to Employees for Services
   3. Stock Subscriptions
      1. Examples of Stock Subscription Transactions
   4. Additional Paid‐in Capital
      1. Examples of Additional Paid‐In Capital Transactions
   5. Donated Capital
   6. Retained Earnings
      1. Examples of Retained Earnings Transactions
   7. ASC 505‐20, Stock Dividends and Stock Splits
      1. Dividends
      2. Example of Dividends
      3. Property Dividends
      4. Scrip Dividends
      5. Liquidating Dividends
      6. Stock Dividends
      7. Stock Splits
      8. Example of Small Stock Dividend
      9. Example of Large Stock Dividend
      10. Distributions to Shareholders Having Cash and Stock Components
   8. ASC 505‐30, Treasury Stock
      1. Cost Method
      2. Par Value Method
      3. Share Retirement Method
      4. Example of Accounting for Treasury Stock
      5. Example of the Cost and Par Value Methods
   9. Other Treasury Stock Issues
      1. Takeover Defense as Cost of Treasury Stock
      2. Accelerated Share Repurchase Programs
      3. Own‐Share Lending Arrangements Related to Convertible Debt Financing
   10. Other Equity Accounts
   11. ASC 505‐60, Spin‐offs and Reverse Spin‐offs
       1. Spin‐offs
       2. Reverse Spin‐offs
   12. Disclosure Requirements
   13. Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 505 consists of five subtopics:

• ASC 505‐10, Overall, provides guidance on issues not ...