Question

Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss. (10 marks, maximum 650 words)

Answer 1

Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss.

Answer: Some examples of items which adjust directly to the equity without including in the profit aud loss:- 1). Premium Collected on issue do stocks. 2). Purchase of treasury stock 3). Issuance of treasury stock. 4). Paid in Capital in excess of par value at the time of purchase or issue of treasury stock. 5). Issuance of common stock or preferred stock. 6). Increase in authorised capital. 7). Transactions related to stock split. 8). Goodwill a result generated out of acquisition of merger. 9). Discount on issuance of stocks. 10). Any conversions do stock, example Convertible preferred stock is now Convesting into Coromon stock. . These are all the cases were directly adjusted to equity without inclusion in profit or loss. * "Like and Support *