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Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
Why are preferred dividends deducted from net income when calculating EPS?
Earning per share is calculated with net income available to ordinary share holders only so as preferred dividend is not part of ordinary shareholders that's why it is deducted to find out the net income exclusively available for ordinary shareholders.
Called up share capital?
Called-up capital is the part of a company's issued capital which the board of directors of the company has called upon the subscribers to make payment.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
Where is Share Application money receiced is shown in balance sheet?
The correct accounting treatment in respect of share application money is analysed as below: · Section 211 of the Companies Act, 1956 provides that the balance sheet of a company shall give a true and fair view of the state of affairs of the company and shall be in the form (either horizontal or vertical) as set out in Part I of Schedule VI. · The broad heads under "Liabilities" therein are (i) Share Capital, (ii) Reserves and Surplus, (iii) Secured Loans, (iv) Unsecured Loans and (v) Current Liabilities and Provisions. The item of 'share application money' does not appear in the subheads under any of these heads. · Any subscription received by a company against issue of share capital can be regarded as "subscribed share capital" only when the share capital is actually subscribed and allotted as well. Until the allotment is made, any subscription cannot be included in the amount of subscribed share capital. [ICAI Compendium of Opinions, Vol. XII, pp. 121 to 123]. Share application money, therefore, cannot be treated as 'Share Capital". · Share application money only in respect of invalid or revoked applications and excess application money received due to over-subscripttion, however, may be treated as "Current Liabilities". The instant case does not satisfy any of the above, hence cannot be treated as "Current Liabilities" Share application money, therefore, can neither be categorized as "Share Capital' nor "Current Liabilities". · The ICAI Compendium of Opinions, [Vol. XV, (1996 Edn.) pp. 34 to 36], opines that the "share application money pending allotment" should be shown in the balance-sheet under a separate heading between "Share Capital" and "Reserves and Surplus". · Share application money is also not an instrument, much less an Equity linked instrument.
Why might a company repay part of its share capital?
Its cash reserves exceed its requirements for the foreseeable future
How reserves are part of capital?
Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
Free reserves under S372A of the companies Act 1956 whether includes capital reserves?
No, Capital reserves cannot be part of free reserves under S372A of Companies Act 1956.
Is reserves in a balance sheet a current liability?
No reserves s part of the capital of the company. Reserves are funds help back by the company to do other things in the furture. It is not a current liability.
Are owners fund part of share capital?
Yes
Is share capital an equity?
Yes share capital is part of equity which may includes other kind of capital as well like owner’s capital etc
Is share premium is part of paid up capital?
No, share value at par is considered while calculating paid up capital.
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
Similarities between ordinary shares and preference shares?
1 - Both are part of share capital of business 2 - Both have the voting powers 3 - Both are equity based financing tools.
How much is the US capital gains tax?
Capital gain taxes are based in large part on your ordinary tax rate.... * Ordinary tax rate 10%, long term capital gains tax 0%, short term capital gains tax 10% * Ordinary tax rate 15%, long term capital gains tax 0%, short term capital gains tax 15% * Ordinary tax rate 25%, long term capital gains tax 15%, short term capital gains tax 25% * Ordinary tax rate 28%, long term capital gains tax 15%, short term capital gains tax 28% * Ordinary tax rate 33%, long term capital gains tax 15%, short term capital gains tax 33% * Ordinary tax rate 35%, long term capital gains tax 15%, short term capital gains tax 35%
Why are preferred dividends deducted from net income when calculating EPS?
Earning per share is calculated with net income available to ordinary share holders only so as preferred dividend is not part of ordinary shareholders that's why it is deducted to find out the net income exclusively available for ordinary shareholders.
What is subscribed capital?
The individual subscribed share value and liability of the total share capital of a company. In detail: Par value of that part of the authorized share capital which has been issued (sold) as shares-whether their purchasers (shareholders) have paid for them or not. A firm can, at any time, issue new shares up to the full amount of authorized share capital. Also called subscribed capital, issued share capital or subscribed share capital.
