TAILIEUCHUNG - Lecture Intermediate accounting (16th edition): Chapter 16 - Kieso, Weygandt, Warfield

Chapter 16 - Dilutive securities and earnings per share. After completing this chapter you should be able to: Describe the accounting for the issuance, conversion, and retirement of convertible securities, explain the accounting for convertible preferred stock, contrast the accounting for stock warrants and for stock warrants issued with other securities. | PREVIEW OF CHAPTER 16 Intermediate Accounting 16th Edition Kieso ● Weygandt ● Warfield Describe the accounting for the issuance, conversion, and retirement of convertible securities. Contrast the accounting for stock warrants and for stock warrants issued with other securities. LEARNING OBJECTIVES Describe the accounting and reporting for stock compensation plans. Compute basic earnings per share. Compute diluted earnings per share. After studying this chapter, you should be able to: Dilutive Securities and Earnings per Share 16 LO 1 DILUTIVE SECURITIES Stock Options Convertible Securities Preferred Stock Should companies report these financial instruments as a liability or equity? LO 1 Debt and Equity (at the holder’s option) Benefit of a Bond (guaranteed interest and principal) Privilege of Exchanging it for Stock Convertible bonds can be changed into other corporate securities during some specified period of time after issuance. + LO 1 Accounting for Convertible Debt DILUTIVE SECURITIES To raise equity capital without giving up more ownership control than necessary. Obtain debt financing at cheaper rates. Two main reasons corporations issue convertibles: Accounting for Convertible Debt LO 1 The accounting for convertible debt involves reporting issues at the time of (1) issuance, (2) conversion, and (3) retirement. At Time of Issuance Accounting for Convertible Debt Recording convertible bonds follows the method used to record straight debt issues, with any discount or premium amortized over the term of the debt. LO 1 Illustration: Miller Corporation issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Record the entry at date of issuance. ($4,000,000 x 99% = $3,960,000) Accounting for Convertible Debt LO 1 Issue Price = Cash 3,960,000 Discount on Bonds Payable 40,000 Bonds Payable 4,000,000 Accounting for Convertible Debt Companies use the book value method when .

• Kế toán - Kiểm toán
• Intermediate accounting
• Lecture Intermediate accounting
• Dilutive securities
• Earnings per share
• Compensation plans
• Computing earnings per share
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Accrual accounting
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Financial reporting
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process