SHAREHOLDERS EQUITY - Owners equity of a SUBSCRIBED SHARE CAPITAL - The portion of the

corporations statement of financial position. authorized share capital that has been subscribed
but not yet fully paid.
2 Major components
- SHARE CAPITAL OUTSTANDING SHARE CAPITAL - These are issued
- RETAINED EARNINGS shares which are in the hands of the shareholders.

SHARE CAPITAL - It reflects the amount of resources
received by a corporation.
RETAINED EARNINGS/ ACCUMULATED PROFIT - It is
the amount capital acccumulated and retained
through profitable operations.
TREASURY STOCK - These are issued shares that
acquired by the corporation but not yet retired and
awaiting to be reissued at a later date.

PAS - Philippine Accounting Standard

SHARE CAPITAL - It is the shares to be subscribe and

paid in or to be paid by the shareholder.

LEGAL CAPITAL - It is the capital contributed by

shareholders comes from sales of stock.

SHARE PREMIUM/ADDITIONAL PAID IN CAPITAL -

The portion of the paid in capital representing
amounts paid by shareholders of par.

SHARE CAPITAL is divided into transferrable SHARES

OF STOCK.

SHARES OF STOCK - It represents the interest or the

right of a shareholder in a corporation that is
evidenced by a certificate of stock.

BASIC TYPES OF SHARE CAPITAL

-ORDINARY SHARE represents the basic ownership
class of the corporation.
When only one class of share is issued
The entity’s residual equity

PREFERENCE SHARES - Give its owners certain

advantages over ordinary shareholders.

AUTHORIZED SHARE CAPITAL- The number of

authorized shares indicates the maximum number of
shares the corporation can issue.

ISSUED SHARE CAPITAL - These are shares which

have been sold or paid for in full.
- it is credited for the total par-value of fully
collected subscriptions

- it is debited only when the issued shares are

retired,redeemed,or canceled by the corporation.