The shareholders' meeting for Kissinger Company SE has been in progress for some time. The chief financial

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The shareholders' meeting for Kissinger Company SE has been in progress for some time. The chief financial officer for Kissinger is presently reviewing the company's financial statements and is explaining the items that comprise the equity section of the statement of financial position for the current year. The equity section of Kissinger at December 31, 2017, is as follows.
The shareholders' meeting for Kissinger Company SE has been in

At the meeting, shareholders have raised a number of questions regarding the equity section.
Instructions
With the class divided into groups, answer the following questions as if you were the chief financial officer for Kissinger Company SE.
(a) "What does the cumulative provision related to the preference shares mean?"
(b) "I thought the ordinary shares were presently selling at ‚¬29.75, but the company has the shares stated at ‚¬1 per share. How can that be?"
(c) "Why is the company buying back its ordinary shares? Furthermore, the treasury shares have a debit balance because they are subtracted from equity. Why are treasury shares not reported as an asset if they have a debit balance?"

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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