Example 1) Entity ABC issues 1,000 ordinary shares of its CU20 par value each share.
Total proceeds for selling the shares 22,000 Value of share capital - ordinary shares 20,000 Additional paid in capital in excess of par 2,000 Dr Cash (financial 22,000 asset) Cr Share capital (equity) 20,000 Cr Share premium 2,000 (equity) Example 2) Entity ABC issues two types of shares: 2,000 ordinary shares with no par value but, instead, with a stated value of CU1 and 600 redeemable preference shares at CU10 par value.
Ordinary Preference Total shares shares Value of share capital 2,000 6,000 8.000 Additional paid in capital 62,000 27,000 9.000 in excess of par Total proceeds for selling 64,000 33,000 97.000 the shares Dr Cash (financial asset) 64,000 Cr Share capital (equity)- ordinary shares 2,000 Cr Share premium (equity)--ordinary 62,000 shares Dr Cash (financial asset) 33,000 Cr Share capital (equity)- preference 6,000 shares Cr Share premium (equity)- 27,000 preference shares Example 3) Entity ABC issues at 01/04/2012 a number of 1,000 mandatory redeemable preference shares at par of CU50 per share with a 7 per cent fixed dividend on the par value payable annually (assume that 7 per cent is the market rate of interest for this type of instrument).The preference shares are cumulative.
Dr Finance costs (profit or loss) 2,625 Cr Preference shares dividends 2,625 (financial liability) Example 4) Entity ABC issues two types of shares: 1,000 ordinary share and 1,000 redeemable preference shares.
Example 5) Entity ABC issues - during 2010 - 5,000 convertible preference shares of CU90 par value.
Table 1 provides a synopsis of these phases, related counselor loci, relevant ABC issues, and potential ABC interventions.
Reorienting --Educating parents and reeducating and child on new interactional patterns to enhance changes in cognition, attitudes, and perceptions --Teaching problem- solving, brainstorming possible solutions, identifying possibilities, testing solutions, and evaluating process of decision-making Adlerian Phases of Counseling ABC Issues 1.