Professional Documents
Culture Documents
for the people who are sick because of the COVID19 coronavirus
(SARS-CoV-2) and for the prevention of a global outbreak
God our Father, we come to you in our need We implore you to stop the spread of this
to ask your protection against the COVID 19, virus and to save us from our fears. Grant this
that has claimed lives and has affected many. through our Lord, Jesus Christ, your Son, Who
lives and reigns with You, in the unity of the
We pray for your grace, for the people tasked Holy Spirit, God forever and ever. Amen.
with studying the nature and cause of this
virus and its disease and of stemming the We fly to Your protection, oh Holy Mother of
tide of its transmission. God. Do not despise our petition in our
necessities, but deliver us always from all
Guide the hands and minds of medical dangers, oh Glorious and blessed Virgin.
experts that they may minister to the sick Amen.
with competence and compassion, and of
those governments and private agencies that Our Lady, health of the sick, pray for us.
must find cure and solution to this epidemic. St. Raphael the Archangel, pray for us.
St. Roch, pray for us.
We pray for those afflicted. May they be St. Lorenzo Ruiz, pray for us.
restored to health soon. Protect those who St. Pedro Calungsod, pray for us.
care for them. Grant eternal rest to those who
have died. Grant us the grace to work for the
good of all and to help those in need.
Shareholders’ Equity
(Treasury Shares, Rights Issue, Share Split)
Cash 300,000
Treasury shares 300,000
Illustration (cont’d)
Reissuance at more than cost
The treasury shares are subsequently reissued at P200
per share.
Cash 400,000
Treasury shares 300,000
Share premium - treasury shares 100,000
Cash 200,000
Retained earnings 100,000
Treasury shares 300,000
Another Method: Par value
or Stated Value Method
The Company’s 2,000 shares with par value of P100 are
acquired for a total consideration of P150,000, the
journal entry is
Land 1,000,000
Ordinary share capital 1,000,000
Treasury Share
Subterfuge (cont’d)
• If subsequently, 3,000 shares are donated to
the corporation by the shareholders and the
same shares are reissued at P90 per share,
the journal entry should be
Cash 270,000
Land 200,000
Donated capital 70,000
Donation of Capital
• Contributions, including shares of an entity,
received from shareholders shall be recorded at
fair value with the credit going to donated capital.
• Entities receive from nonshareholders gifts or
grants of funds or other assets that are restricted
for property and equipment additions.
• Capital gifts or grants shall be recorded at fair
value when received or receivable.
• Such capital gifts or grants from nonshareholders
are generally subsidies and credited to income.
Assessment on
Shareholders
• Assessment may be levied on shareholders when
shares are originally issued at discount or when the
corporation is in dire need of financial assistance.
• When shares are originally issued at discount, the
discount is actually a receivable from the shareholder.
• EXAMPLE: If there is a discount on share capital of
P100,000 and the same is charged to the shareholder
by virtue of assessment made by the board of
directors
Cash 3,250,000
Preference share capital (20,000 x 100) 2,000,000
Share premium - PS 1,000,000
Share warrants outstanding 250,000
Cash 3,250,000
Preference share capital (20,000 x 100) 2,000,000
Share premium - PS 400,000
Share warrants outstanding 850,000
Another Illustration
• Preference shares, 20,000, with par value of
P100, are issued for P3,250,000, together
with 20,000 warrants to acquire 20,000, P50
par value ordinary shares at P60 per share.
• The preference share ex-warrant and the
warrant have no market value but the ordinary
share has a market value of P100.
Another Illustration (cont’d)
Market value of ordinary share 100
Less: Option price or exercise price 60
Intrinsic value of warrant 40
Multiply by number of ordinary shares under the warrants 20,000
Total value of share warrants 800,000
Cash 3,250,000
Preference share capital (20,000 x 100) 2,000,000
Share premium - PS 450,000
Share warrants outstanding 800,000
Summary
• Accounting for treasury shares
• Recapitalization: typically (1) change from
par to no-par, (2) change from no-par to par,
(3) reduction of par value, (4) reduction of
stated value, (5) split up and (6) split down
• Rights Issue: issuance, expiration and
exercise
• Preference share issued with share warrants
End of Presentation
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