BYP 11-6 COMMUNICATION ACTIVITY
Dear Uncle Joe:
Here are my explanations:
(1) Authorized stock is the total amount of stock that a corporation is given
permission to sell as indicated in its charter. If all authorized stock is
(2) Issued stock is the amount of stock that has been sold either directly
to investors or indirectly through an investment banking firm.
(3) Outstanding stock is capital stock that has been issued and is being
held by stockholders.
(4) Preferred stock is capital stock that has contractual preferences over
common stock in certain areas.
success with your inventions.
Regards,
BYP 11-7 ETHICS CASE
(a) The stakeholders in this situation are:
The president of Pigua.
The shareholders of Pigua.
Those who live in the environment to be sprayed by the new
(untested) chemical.
(b) The president is risking the environment and everything and everybody in
to be irresponsible and unethical.
(c) A parent company may protect itself against loss and most reasonable
BYP 11-8 ALL ABOUT YOU
(a) Ernst and Young LLP was the CPA firm that audited Apple’s financial
statements.
per share was $27.68.
(c) Net sales in 2011 were $108,249 million.
(d) Capital expenditures (spending) totaled $4,260 million in 2011.
(f) Proceeds from issuance of common stock were $831 million in 2011.
BYP 11-9 FASB CODIFICATION ACTIVITY
that the board of directors deems necessary or desirable to retain in
the business.
(b) Stock Split: An issuance by a corporation of its own common shares
to its common shareholders without consideration and under conditions
called a stock split-up.
(c) Except for a few instances, the issuance of additional shares of less
than 20 or 25 percent of the number of previously outstanding shares
would call for treatment as a stock dividend as described in paragraph
505–20–30–3.
IFRS EXERCISES
IFRS 11-1
May 10 Cash (1,000 X $18) …………………………………….. 18,000
IFRS 11-2
MEENEN CORPORATION
Partial Statement of Financial Position (Partial)
December 31, 2015
Equity
Share capital—ordinary, €10 par value,
5,000 shares issued and 4,500 shares
IFRS 11-3
Mar. 2 Organization Expense …………………………………. 30,000
June 12 Cash ……………………………………………………….. 375,000
July 11 Cash (1,000 X $110) …………………………………… 110,000
Share Capital—Preference
Share Premium—Preference
Nov. 28 Treasury Shares ……………………………………….. 80,000
IFRS 11-4 INTERNATIONAL FINANCIAL REPORTING PROBLEM
(a) Cash …………………………………………………………. 14
(c) The company did not declare or pay a dividend for the year ended April
30, 2011. This information is determined from the company’s statement
of changes in equity.
(d) The company has a negative 10.2% return on ordinary shareholders’
equity. The computation is as follows:
(£4,482)
(£41,755 + £46,287) ÷ 2
diluted.