Question

Share splits and share dividends may be used by a corporation to change the number of its shares outstanding.
(a) What is meant by a share split effected in the form of a dividend?
(b) From an accounting viewpoint, explain how the share split effected in the form of a dividend differs from an ordinary share dividend.
(c) How should a share dividend that has been declared but not yet issued be classified in a statement of financial position? Why?



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  • CreatedJune 17, 2013
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