PRACTICE TOPIC
Share Capital & Equity
Practice Share Capital & Equity with 11 accounting challenges on Accountely — instant IAS/IFRS-compliant scored feedback on every submission.
What share capital & equity covers
Share capital and equity record the owners' interest: amounts subscribed by shareholders, amounts earned and retained, and any reserves. Shares issued above their nominal value split between the par-value account and a share premium or additional paid-in capital account, and that split has to be maintained because the two have different legal characters.
These challenges cover issues at par and at a premium, and the presentation of the equity section.
Where marks are usually lost
- Crediting the whole proceeds to share capital and ignoring the premium.
- Treating share issue costs as an expense rather than a deduction from equity.
- Presenting retained earnings before share capital in the equity section.
Further readingPreparing a balance sheet step by step
11 Share Capital & Equity practice challenges
TitleTypeDifficulty
Ashgrove Corporation - Equity Section of the Statement of Financial Position Balance SheetmediumPenrose Foods - Preference and Ordinary Dividends Across the Three Dates Multi-StatementeasyMillbrook Corporation - Complete Statement of Financial Position Balance SheetmediumHalloway Brewing - A Share Issue, a Bonus Issue and a Share Split Multi-StatementmediumIronwood Corporation - Share Capital Transactions: Issues, Treasury Shares and Dividends Multi-StatementhardColwyn Instruments - Treasury Shares Reissued Above and Below Cost Multi-StatementmediumCastellane SpA - Statement of Financial Position Balance SheetmediumCobalt Ridge Ltd - Three Statements with a Non-cash Share Issue for Equipment Multi-StatementhardMeridian Holdings PLC - Classified Statement of Financial Position Balance SheetmediumCorvane Technologies - Equity-Settled Share Options Over the Vesting Period (IFRS 2) Multi-StatementhardKingsmere Ltd - Statement of Changes in Equity: Share Issue, Revaluation, Dividend and a Prior-Period Error Multi-Statementhard