| Participating (PS) | Share equally between PS and CS then pro-rata |
| Outstanding Shares Calculation | Outstanding = Issued - TS |
| Treasury Stock Method: Cost | Calculated upon reissue.
TS gained is based on cost @ reissue |
| Treasury Stock Method: Par Value | Calculated upon repurchase.
TS is gained based on par
DR: APIC-CS for difference between par and original cost |
| How are G/L accounted for with Treasury Stock? | Both affect APIC not IS. It will be backed into RE if necessary, but RE will NEVER increase. |
| When are dividends recorded against RE and when is the payable removed? | 1) Recorded against RE when declared
2) Payable removed on payment date |
| How do you account for property dividends? | Restate to FV (G/L on IS) then distribute |
| How do you account for stock dividends? | Large Stock Dividend: >20-25% reduce RE by par
Small Stock Dividend: <20-25% reduce FMV by par |
| Non-compensatory Stock Right/Warrant | US GAAP ONLY
No JE until stock is purchased (memo only) |
| Compensatory Stock Right/Warrant | US GAAP/IFRS Required
No JE on grant date, expense calculated using FV estimate and allocated during the vesting service period |
