微觀經(jīng)濟(jì)學(xué)dividends,retainedearningsandincomereporting-在線瀏覽
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【正文】 d ? Example of entry to record correction ? Statement presentation of priorperiod errors PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 25 Retained Earnings 300 000 Accumulated Depreciation 300 000 (To adjust for understatement of depreciation in a prior period) Retained Earnings (partial) Balance, 1 January as reported $800 000 Correction for overstatement of profit in prior period (depreciation error) (300 000) Balance, 1 January as adjusted $500 000 Reconciliation of beginning and ending retained earnings ? The retained earnings statement shows changes in retained earnings during the year ? Debits and credits to retained earnings: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 26 Retained Earnings 1. Loss 1. Profit 2. Prior period error adjustments 2. Prior period error adjustments for overstatement of profit for understatement of profit 3. Changes in accounting policy 3. Changes in accounting policy reducing retained earnings increasing retained earnings 4. Cash dividends and share dividends Statement presentation and analysis ? Equity section of a pany’s statement of financial position includes: –Share capital: contributed equity (paid and any outstanding amounts) –Retained profits: prior profits kept within pany and not distributed as dividends –Reserves: changes in equity not created through transactions with owners PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 27 LO3 Statement presentation and analysis continued Presentation PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 28 Consolidated Notes 2020 2020 Equity $’000 $’000 Contributed equity 23 23 004 22 654 Reserves 24(a) (1 062) (505) Retained earnings 24(b) 9 109 7 223 Total equity 34 968 34 372 ROSS HUMAN DIRECTIONS LTD Balance Sheets (extract) As at 30 June 2020 Statement presentation and analysis continued Analysis ? Profitability is measured by return on ordinary shareholders equity ? It shows how many dollars of profit were earned for each dollar invested by ordinary shareholders ? Formula: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 29 = Return on ordinary shareholders’ equity 247。1 Chapter 15 Companies: dividends, retained earnings and ine reporting PowerPoint presentation by Dr Anne Abraham University of Western Sydney 169。 2020 John Wiley amp。 Profit minus preference dividends Average ordinary shareholders equity COMPANY INCOME STATEMENTS ? Include the same sections as in a proprietorship or a partnership except for the reporting of ine taxes ? For tax purposes, panies are considered to be a separate legal entity ? As a result, ine tax expense is reported in a separate section of the pany ine statement before profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 30 LO4 COMPANY INCOME STATEMENTS continued ? Condensed ine statement shows typica
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