Answered: Under IFRS, the amount of capital…

Under IFRS, the amount of capital received in excess of par value would be credited to: a. Retained Earnings. b. Contributed Capital. c. Share Premium. d. Par value is not used under IFRS.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5MC

See similar textbooks

Related questions

Q: Under FASB 52, the temporal method requires that: A. translation gains and losses are included in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: Is there a consequence for reported profit or loss if a particular financial instrument, for…

A: Equity Stock represents the ownership in the company. Equity shareholders have the residual claim on…

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: Shareholder's equity: It is the amount of the money that can be returned to the shareholders and it…

Q: In the Statement of Changes in Equity, the result from the Statement of Profit or Loss is always…

A: The income statement is prepared to find the profit or net loss incurred during the period.

Q: Why is the distinction between paid-in capital andretained earnings important?

Q: IFRS 9, the cumulative balance of equity as a result of measuring the investment at fair value…

A: Under IFRS 9, an investment can be measured at fair value or amortized cost. If the investment is…

Q: Which of the following correctly reflects the effect of dividend? a. On the date of payment of…

A: Solution: Option a, b and c are incorrect due to following: a. On the date of payment of property…

Q: For external statutory purposes, stock is valued at A. marginal cost B. absorption cost C. next in…

A: Prime Cost is the total of all the direct cost of a product. It includes material cost and direct…

Q: The fair value method of accounting for stock

A: As per IFRS 9 , Equity investments should be measured through fair value through profit and loss…

Q: Which of the following regarding the weighted-average cost of capital is true? Group of answer…

A: The weighted average cost of capital is the average rate that a company is expected to pay to its…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Example of items that would be adjusted directly against equity, rather than being included as part…

Q: Other than from retained earnings, dividends may be declared out of: Choose one answer. a. Paid in…

A: Dividend refers to the amount of profit that is distributed by the company to its shareholders.

Q: O Preferred equity is a separate component of WACC. O There is a tax shield on the equity dividends…

A: There is debt used in the capital structure of company debt have advantages of interest tax sheild…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Transaction costs are capitalized when acquiring investment in equity or debt securities, except…

A: Transaction costs are required costs incurred while sale or purchase of equity or debt security. In…

Q: adjusted directly against equit

A: Equity refers to the stake of shareholder's in the company. The formula for calculating equity of…

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: Which of the following regarding the weighted-average cost of capital is true? a. Taxes do not…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: What is the difference between authorized capital, issued capital and additional paid in capital?

A: The assets and cash of a firm are referred to as capital. Capital might be cash, machinery,…

Q: Which of the following is not an undistributable reserve? A. Share premium account B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: NU Corporation declares and distributes dividend that is a result of current earnings. How will the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only…

Q: Explain the accounting for share capital issued for non-cash consideration.

A: The share issue is the most common way in order to arrange funds for the business of the company.…

Q: The term reserves is used under IFRS with reference to all of the following except:(a) gains and…

A: International Financial Reporting Standards (IFRS): International Financial Reporting Standards is…

Q: Share dividends distributable is included in the statement of financial position O As a current…

A: Correct answer is option3# As an adjunct account to share capital

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: The unrealized gains and losses are realized as Uncomprehensive Income. It’s a line item which…

Q: The Equity Method of accounting for investments: a) Requires the investment asset to…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

Q: How are paid-in-capital and retained earnings: Similar? Different?

A: The answer is as fallows

Q: Which of the following does not affect net working capital? purchase of ordinary share capital…

A: Working capital is excess of current asset over current liabilities. Any changes in current assets…

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Securities held to maturity (HTM) are bought for ownership before they expire. For instance, the…

Q: Any gain or loss on the restatement of non-monetary items is included: In the profit or loss,…

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: Which of the following is shown on a statement of cash flows? A share dividend A share split

A: Cash Flow Statement is a statement whic show the movement of cash during the particular financial…

Q: Under IFRS 9, the cumulative balance of equity as a result of measuring the equity investment at…

A: As per IFRS 9, Financial instruments, The unrealized gain on changes in fair value of the financial…

Q: Under the capital maintenance concept, which of the following items should be deducted from the…

A: Capital maintenance is an accounting concept based on the principle that a company's income should…

Q: a Calculate the cost of each capital component: i the after-tax cost of debt| i the cost of…

A: Note: This post has several qeuestions. The first question, with its three sub-parts, has been…

Q: is NOT a consideration for Cost of Capital? A. Invetsor requirements B. Size of the Company C. All…

A: Cost of capital is very important for the company and cost of capital will decide the value of…

Q: provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity: The amount remaining after subtracting company long term and short term…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: A firm's capital structure can be determined by examining which parts of the firm's balance sheet?…

A: A firm capital structure is generally consist of long term debt ,preferred stock and equity . A firm…

Q: 2. Which of the following correctly matches the classification of the debt investment with its…

A: IAS 32 and IAS 39, the previous IFRS financial instruments accounting standards, classified debt…

Question

Under IFRS, the amount of capital received in excess of par value would be credited to:

a. Retained Earnings.

b. Contributed Capital.

c. Share Premium.

d. Par value is not used under IFRS.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.
Provide an example of items that would be adjusted directly against equity rather than being included as part of profit or loss.
some examples of items that would be adjusted directly against equity, rather than beingincluded as part of profit or loss.
What is the default classification for an equity investment? A Fair value through profit or loss B Fair value through other comprehensive income C Amortised cost D Net proceeds
what are the examples of Items that can be adjusted directly against equity rather than including profit or loss?
Is there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence.
an investment in equity instrument may not be classified as a financial asset subsequently measured at a) Fair value through profit or loss b) Amortized cost c) Fair value through other comprehensive income d) none of these
Which of the below statements is false for equity? A. Limited liability B.Residual claim on firm value C.Payouts to equity holders must be made before interest payments D.Voting Rights
Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss. (Explain Briefly)
Which of the following does not affect net working capital? purchase of ordinary share capital purchase of inventory on account purchase of equipment on account repayment of long term debt