Accounting theory - Assignment Example

Only on StudentShare

Extract of sample
Accounting theory

October: At the directors’ meeting it was decided to allot shares in full to the applicants who had paid the full amount and proportionally to all the remaining applicants. According to the company’s constitution, all surplus money from application can be transferred to Allotment and Call accounts.
February 15: As provided for in the constitution, the directors decided to forfeit these “C” ordinary shares. The constitution further provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the former shareholders. This is in line with the notice usually given by the board of directors lasting fourteen days after which the defaulting members will lose their shares through forfeiture (Leo, Hoggett, & Sweeting 2012).
February 20: The Company offered ordinary shareholders 1 option (at a price of $1 per option), for every 3 shares held. Each option entitled the holder to buy 1 “D” ordinary share at a price of $1.50 per share, exercisable on 1 ...
Download paper


This is in accordance with the constitution. The company is also entitled to keep any balance from forfeiture of “B” ordinary shares.
October 1 Applications had been received for 170,000 shares, of which…
Author : chesleyrodrigue

Related Essays

Positive Accounting Theory
The predictions of real world situations help small businesses in choosing the appropriate accounting policies that would help them in advancing. The predictions of positive accounting theory with regards to the real world situation go a long way in assisting firms to react positively to new standards of accounting introduced by the legal bodies. Moreover, the overall objective of the positive accounting theory is to enable firms to predict and understand their accounting policies choices. The theory also puts into consideration, the economic consequences of the policies on the firms and the...
5 pages (1255 words) Research Paper
Financial Accounting Theory
The accounting frameworks are there for wide use of the financial statements of a company. A common framework of accounting would certainly be useful for the stakeholders of the company. But the criticism of the conceptual framework arises as these are not found so useful. The arguments are that the frameworks are not useful as there is lacking of practical evidences. The paper is an attempt to analyze that the conceptual frameworks of financial accounting are really useful or it is just a time wasting activity. Conceptual framework A conceptual framework is made for explaining the factors of...
6 pages (1506 words) Essay
Financial Accounting Theory
One of the prominent implementations of accounting theory is in terms of developing normative standards. In these regards, accounting theory functions as a means of legitimizing the discipline of accounting in that articulates standards and regulations that establish public faith in the process (Deegan & Unerman 2011). Specific instances such prescriptive theories are implemented can be witnessed in terms of assets, wherein normative theories explore how these elements should be recorded (Deegan & Unerman 2011). Another such instance is prescriptive standards regarding the amount of accounting...
12 pages (3012 words) Essay
Among these are the ground concepts that may be used in the formulation of accounting theories among other aspects of accounting theories. Some contend that in the beginning many primitive societies, those that were in existent in the earliest days, developed the art of counting before developing the art of naming (Brown, 2006, 3). These primitive forms of accounting for the number of items provide the basis by which early societies may be said to have been practicing accounting. Such groups are likes of the Egyptian with the need to account for grain harvested and stored. Examples of other...
8 pages (2008 words) Essay
Accounting Theory
Laan (2009) argues that the two theories namely Stakeholder and Legitimacy, derived from the broader political economy perspective, broadly explain motivations for social disclosures. The paper aims at exploring whether the main motivation to corporations for social and environmental reporting is to enhance their corporate image and credibility with stakeholders....
6 pages (1506 words) Essay
Accounting Theory
Critical theorist says that disclosing social responsibility information could be a waste if not accompanied by major changes in how the society is structured....
2 pages (502 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!