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Section 22 – Example 1 – Examples incorporating company law requirements
Disclosures
Detailed below are the illustration examples incorporating company law requirements.
Example 26: Extract of Statement of Changes in Equity from financial statements
Statement of Changes in Equity
For the Year ended 31 December 2015
| Equity Share Capital | Revaluation Reserve | Other Reserve | Retained Earnings | Cash flow hedge Reserve | Total attributable to the Parent | Non-controlling Interest |
Total Equity |
|
| € | € | € | € | € | € | € | € | |
| Balance at 1 January 2014 | 100,000 | 225,000 | 115,375 | 115,375 | 1,000 | 331,375 | 100,000 | 441,375 |
| Changes in ownership interests in subsidiaries which do not result in a loss of control | (100,000) | – | ||||||
| Profit for the year | 10,000 | 83,818 | 91,818 | 2,000 | 93,818 | |||
| Balance at 31 December 2014 | 100,000 | 225,000 | 0 | 209,193 | 1,000 | 2,000 | 535,193 | |
|
Balance at 1 January 2015 |
100,000 | 225,000 | 0 | 209,193 | 1,000 | 0 | 0 | 535,193 |
| Equity Shares issued net of issue costs | 20,000 | 20,000 | ||||||
| Profit for the year | 1,005,772 | 1,005,772 | 10,000 | 1,005,772 | ||||
| Equity dividends paid (see note XX) | (9,900) | (9,900) | (100) | (10,000) | ||||
| Capitalisation of shares | 1,000 | (1,000) | – | – | ||||
| Other Comprehensive Income | (15,000) | (15,000) | (15,000) | (15,000) | ||||
| Balance at 31 December 2015 | 109,000 | 225,000 | (14,000) | 1,214,965 | (15,000) | XXXX | 10,100 | 1,554,965 |
Example 27: Extract from accounting policies note
To be included in the financial instruments note
Preference share capital
Redeemable preference shares and the cumulative preference dividend reserve have been classified as liabilities in the balance sheet. The preference dividend is charged in arriving at the interest cost in the profit and loss account. (include the following where applicable) However no dividends will be paid on the cumulative preference shares until the company has positive profit and loss reserves.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Example 28: Extract from notes to the financial statements
NOTE: in the example below the cumulative preference dividend reserve is separated as this dividend was not paid
| 7 Creditors – amounts falling due within one year | 2015 | 2014 |
| € | € | |
| 11% redeemable cumulative “A” preference share capital of
€1 each (see (i) below) |
XXXXX |
XXXXX |
| Redeemable cumulative “B” preference share capital of €1
each (see (i) below) |
XXXXX |
XXXXX |
| Convertible loan notes (iii) below) |
XXXXX |
XXXXX |
| Cumulative preference dividend reserve (see (ii) below) | XXXXX
|
XXXXX
|
| XXXXXX
|
XXXXXX
|
(i) These shares are classified as liabilities in accordance with Section 22 (Liabilities and Equity). The rights attaching to these shares are detailed in the share capital note (note X)
(ii) Provision for a dividend in respect of the preference shares has been transferred to this reserve. This reserve is classified as a liability, in accordance with Section 22 (Liabilities and Equity).
(iii) The convertible loan notes were issued on XXXXXX. Interest accrues annual in arrears and is payable at a rate of 5%, These are convertible at the option of the holder into equity shares in two years time. The undiscounted value is €XXXX.
Example 29: Extract from notes to the financial statements – share capital
| 8 Called up ordinary share capital | 2015 | 2014 |
| € | € | |
| Authorised ordinary share capital | ||
| 1,000,000 ordinary shares of €1 each | XXXX
|
XXXXX
|
| 100,000 “A” ordinary shares of €1 each | XXXX
|
XXXXX
|
| Issued and fully paid ordinary share capital | ||
| 492,000 ordinary shares of €1 each | XXXX | XXXX |
| 7,000 “A” ordinary shares of €1 each | XXXX
|
XXXX
|
| Shares presented as equity |
XXXXX
|
XXXXX
|
On 1 April a further 20,000 shares were issued at €1.50 each.
| Preference share capital | 2015 | 2014 |
| € | € | |
| Authorised preference share capital | ||
| 2,250 redeemable convertible “A” preference shares of €1 each | XXXXX | XXXXX |
| 30011% redeemable cumulative “B” preference shares of €1
each |
XXXXX | XXXXX |
| 100 redeemable cumulative “C” preference shares of €1 each | XXXXX | XXXXX |
| 600 3% cumulative redeemable convertible “D” shares of €1
each |
XXXXX
|
XXXXX
|
| XXXXX
|
XXXXX
|
|
| Issued and fully paid preference share capital | ||
| 2,250 redeemable convertible “A” preference shares of €1 each | XXXXX | XXXXX |
| 300 11% redeemable cumulative “B” preference shares of €1
Each |
XXXXX | XXXXX |
| Shares presented as liabilities | XXXXX
|
XXXXX
|
The redeemable “A” and “B” preference shares are classified as liabilities in accordance with Section 22 (Liabilities and Equity). The rights attaching to each class of preference shares are as follows:
(a) 11% Redeemable cumulative “B” preference share capital
The holders of these shares shall be entitled to attend all general meetings of the company but not to vote. The holders are entitled to payment of their dividend in preference to all shareholders with the exception of the “D” shareholders.
The company was due to redeem these shares at par between XXXXX and XXXXX at a rate of 75,000 shares per annum. All arrears of cumulative dividends are to be paid at the time of redemption. At XX/XX/XX, these shares had not been redeemed.
The holders in the event of a winding up will be entitled to repayment of capital at par and dividends due in priority to the payment of other share classes.
(b) Redeemable cumulative “C” preference share capital
The holders of these shares shall be entitled to attend all general meetings of the company but not to vote.
The shares were entitled to be redeemed at par in equal tranches of 50,000 shares annually on the 1st of June each year commencing XX/XX/XX. At XX/XX/15 these shares had not been redeemed.
In the event of a winding up, the “C” shareholders will rank behind the “D” shareholders but in priority to all others in the right to repayment.
Example 30: Extract from notes to the financial statements – dividends on equity shares
| Dividends | 2015 | 2014 |
| € | € | |
| Dividend paid on ordinary shares of €100 per share (2014:€100) | XXXX
|
XXXX
|
The dividend payable on the preference shares of €XXXX (2013: €XXXX) is included within interest payable and similar charges. The cumulative dividend payable on the preference shares which are classified as financial liabilities is €XXX which has accumulated since 20XX.
During the year the company distributed a property to its director.
Example 31: Extract from notes to the financial statements – disclosure of preference dividend/convertible loan in interest payable
| Interest payable | 2015 | 2012 |
| € | € | |
| Interest payable on convertible bonds/loan | XXXX | XXXX |
| Interest payable on bank loans and overdrafts repayable within five
years |
XXXX | XXXX |
| Preference dividend payable | XXXX
|
XXXX
|
| XXXXX
|
XXXXX
|
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