Wiley Interpretation and Application of IFRS Standards

16 SHAREHOLDERS’ 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 shares
  • Compound financial instruments
• Share Issuances and Related Matters
  • Additional Guidance Relative to Share Issuances and Related Matters
    • Accounting for the issuance of shares
    • Share capital issued for services
    • 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 Framework defines equity as the residual interest in the assets of an entity after deducting all its liabilities. Shareholders’ equity is comprised of all capital contributed to the entity (including share premium, also referred to as capital paid-in in excess of par value) plus retained earnings (which represents the entity’s cumulative earnings, less all distributions that have been made therefrom).

IAS 1 suggests that shareholders’ interests be categorised into three broad subdivisions: issued ...