1. US GAAP v IFRS
   1. TERMINOLOGY
      1. US GAAP
         1. IFRS
      2. Capital stock
         1. Share capital
      3. Common stock
         1. Ordinary shares
      4. Preferred stock
         1. Preference shares
      5. Paid-in capital - excess of par, common
         1. Share premium, ordinary shares
      6. Paid-in capital - excess of par, preferred
         1. Share premium, preference shares
      7. Statement of Other Comprehensive Income
         1. Statement of Recognized Income and Expense ( SoRIE)
      8. Accumulated Other Comprehensive Income
         1. Reserves
      9. Net gains (loss) on investments - AOCI
         1. Investment revaluation reserve
      10. Net gains (loss) on foreign currency transaction - AOCI
          1. Transaction reserve
      11. Fair value adjustment - NOT PERMMITTED
          1. Fair value adjustment - Revaluation reserve
      12. Retained earnings
          1. Retained earnings
      13. Total shareholders' equity - presented after liabilities
          1. Total equity - presented before liabilities
2. Background Knowledge
   1. Definition
      1. A residual amount of the company's assets after creditor claims have been met
      2. Formula: Asset - Liability = Shareholders' Equity
   2. Types of forms of organizations
      1. Corporations
         1. Not-for-profit corp.
         2. Publicly-held corp.
         3. Privately-held corp.
      2. Hybrid Organizations
         1. S corporation
         2. Limited liability company
         3. Limited liability partnership
   3. Combination:
      1. Paid-in Capital
         1. amounts invested by shareholders
      2. Retained Earnings
         1. amounts earned by Co.
      3. Accumulated Other Comprehensive Income
         1. amounts not included in net income
   4. Capital stock
      1. Classification
         1. I. Classified by stages
            1. Authorized shares
            2. Issued shares
            3. Outstanding shares
            4. Treasury shares
            5. Retired shares
            6. Unissued shares
         2. II. Classified by types
            1. 根据有否 par value
            2. Par value stock
            3. Dollar amount per share stated in the M&A
            4. No-par stock
            5. Dollar amount per share not stated in the M&A
            6. Corp. can assign a stated value per share when issued
            7. 根据 right to shareholders
            8. Common stock
            9. voting
            10. share in profit
            11. maintain percentage ownership
            12. share in assets when liquidation
            13. Preferred stock
            14. preferred share in profit
            15. preferred share in liquidation
            16. may be convertible
            17. may be redeemable
            18. 若果系mandatory redeemable preferred stock, 要
            19. 1. Report stock as liabilities
            20. 2. Report dividend as interest expense
            21. may be callable
            22. may be cumulative/ noncumulative
            23. dividend in rear are not liabilities, need not to record
            24. may be partially participating/ fully participating/ nonparticipating
      2. Legal capital
         1. A permanent commitment of capital that cannot be removed without court's approval,
         2. but loss can erode it.
         3. 3 definitions
            1. The portion of equity that MUST BE CONTRIBUTED to the firm when issued.
            2. The amount of capital required by the law that MUST REMAIN in the business.
            3. Equal to par value or stated value of stock
   5. Accumulated Other Comprehensive Income
      1. Components
         1. Net holding gains (losses) on investment
         2. Gains (losses) from and amendments to post retirement benefit plans
         3. Deferred gains (losses) from derivatives
         4. Gains (losses) from foreign currency translations
      2. Presentation
         1. 3 options for amount created DURING the reporting period
            1. Addition section to I/S
            2. As a separate statement
            3. Addition to Statement of shareholders' equity
         2. 1 option for ACCUMULATED amount
            1. A separated component of shareholders' equity in B/S
3. Accounting
   1. Issuance of Shares
      1. for cash
         1. with single security
            1. Topic
            2. with $1 par
            3. with no par
            4. With no par but $1 stated value
         2. with multiple securities
            1. Topic
            2. All FV known ---> proportionate method
            3. 1. 计算应该点样分配 Par & Excess
            4. 2. 做 Entries
            5. Only one FV known ---> incremental method
      2. for non-cash
         1. Topic
            1. a) Use FV of stock given up if known, or
            2. Topic
            3. b) Use FV of asset received, which is more evident
            4. Topic
            5. c) Use appraised values if market value cannot be determined
            6. d) If the asset is donated by an unrelated party
            7. Record REVENUE @ FV of assets received
      3. Share Issue costs
         1. registration fee
         2. underwriter commissions
         3. printing and clerical costs
         4. legal and accounting fees
         5. promotional costs
         6. Reduce "Paid-in capital - excess of par"
   2. Repurchase of Shares
      1. Substance: Distribution of corporate assets to shareholders
      2. Reason for buying back
         1. support the market price
         2. increase earnings per share
         3. distribute in stock option plans
         4. issue as a stock dividend
         5. use in mergers and acquisitions
         6. stop takeover attempts
      3. methods
         1. by retiring
            1. 第一步. Reduce the same amount in capital A/C as they were previously issued
            2. 第二步, credit Cash proceed
            3. 第三步, Balance to "Paid-in Capital - Share Repurchase"
            4. #"Paid-in Capital - Share Repurchase"只可被清至0,不可有debit balance, 所以要继续debit就从"Retained Earnings"中做
            5. example
            6. 1. Cash proceeds < issue price
            7. entries
            8. 2. Cash proceeds > issue price
            9. entries
         2. by holding as treasury shares