PRACTICE TOPIC
Treasury Stock
Practice Treasury Stock with 3 accounting challenges on Accountely — instant IAS/IFRS-compliant scored feedback on every submission.
What treasury stock covers
Treasury stock is a company's own shares that it has reacquired but not cancelled. It is not an asset — a company cannot own part of itself — so it is presented as a deduction from equity. No gain or loss goes through profit on treasury transactions; any difference on reissue is taken to equity.
Challenges here cover acquisition, reissue above and below cost, and presentation within equity.
Where marks are usually lost
- Showing treasury stock as an asset.
- Reporting a gain in profit when treasury shares are reissued above cost.
- Recognising dividend income on shares held in treasury.
3 Treasury Stock practice challenges
TitleTypeDifficulty
Vanguard Corp - Treasury Stock: Purchase and Reissue (US GAAP) US GAAPJournalmediumColwyn Instruments - Treasury Shares Reissued Above and Below Cost Multi-StatementmediumQuarrystone Holdings - Classified Balance Sheet with AOCI and Treasury Stock (US GAAP) US GAAPBalance Sheethard