Abstract
This chapter is emphasising the main concepts, principles and techniques related to equity. Various topics are highlighted and explained, such as share capital, ordinary shares, preference shares and treasury shares, different ways to contribute to the capital of the business, share premiums and their impact, legal reserves and other reserves, net profit or loss of the year and retained earnings, dividend distribution and dividend payment, revaluation reserves and their effect in the current financial statements. Extensive examples and analysis are provided but different other chapters include additional examples in connection to some of these topics. The end of this chapter provides a seven summary questions, alongside with their brief answers, as a conclusion to the subject.
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Notes
- 1.
Net profit less dividend of preference shares divided by the number of outstanding ordinary shares.
- 2.
IAS 32: Financial Instruments: presentation.
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Duţescu, A. (2019). Equity. In: Financial Accounting. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-29485-4_8
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DOI: https://doi.org/10.1007/978-3-030-29485-4_8
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-29484-7
Online ISBN: 978-3-030-29485-4
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