Disc2499

Disc 2499

Contributed Capital & Treasury Stock

1. The Contributed Capital section of Shareholders Equity of the financial statement usually includes the capital stock and additional paid in capital.  Discuss the FASB rationale for requiring additional disclosures regarding capital stock and additional paid in capital

2. Accounting for Treasury Stock:  What are treasury stocks?  Why would a Corporation want to buy back its stock?  Discuss the Cost Method and the Par Value Method for accounting for Treasury Stock.

3. Case C15-8: Compensatory Share Option Plans: Prepare a memo that explains the issues involved in the terms used in this plan.  Discuss the accounting for the terms of this type of compensatory share option plan.