Saturday, April 12, 2008
Today, the lecturer is a little fast and I was literally fed with information after information with no time to reflect or evaluate. Hence, for many sub topics, it was not focused. Never mind about that, here is the summary of the lecture.1.Definition of a limited liability company.
- shareholders enjoy a limited liability.
2. Types: Private or Public Limited.
3. Key factors of companies:
- separate legal entity
- separation of ownership & management
- limited liability
- formality
4. Companies Finance
Equity
- Ordinary Shares
- Preference Shares (non equity)
- Differed Shares
Debt
- Debenture (Bonds)
5. Issue Price
par value (nominal -> share capital) + share premium = issue price
6. market price of a share = price earning ratio * earnings per share
7. Financial Statements (internal and external uses)
8. Dividends in terms of cash and bonus (script issues)
9. Rights Shares: Shares sold to existing shareholders at a price cheaper than market price of a share.
10. Bonuses Shares: Shares given to existing shareholders by using reserves.
11. Reserves:
- revenue reserve (from profit)
- capital reserve (gain) (ie. share premium)
12. Types of Share Capital
- authorised: maximum capital a company can raise
- issued: portion of authorised that has been sold to investors.
- called in: amount already collected.
- paid in share capital: money already collected or paid by shareholders.
I am still not so sure about the IAS 2 so I probably have to revise on that.
Labels: accountancy, accountant in business, accounting, business accounting, financial accountancy, financial accounting
what we could have been, 6:57 PM.
