Professional Documents
Culture Documents
• Authorization
• Subscription
• Collection
• Issuance
• Reacquisition
• Reissuance
• Retirement
TREASURY SHARES
• Corporation’s own shares
• Issued and fully paid
• Reacquired (by purchase, redemption,
donation, or through other lawful means) not
for the purpose of cancellation
TREASURY SHARES
1. Acquisition
Rule: Treasury shares should be
recorded at cost.
How much is cost?
Cash = cash payment
Non-cash = recorded amount of
the noncash assets surrendered
or given in exchange
ACQUISITION
Treasury Shares xxx
Cash xxx
2. # of shares retired
-------------------------- x Total Share Premium
# of shares issued
Any questions or
clarifications???
XYZ Incorporated had the following balances in its Stockholders’ Equity
before the treasury stock transactions occurred.