11. Reporting and Analyzing Shareholder's Equity

Accumulated Other Comprehensive Income (AOCI)

The cumulative change in shareholders’ equity from gains and losses bypassing net income but affecting equity.

Authorized Shares

The share capital amount a corporation is permitted to sell, which can be unlimited or specified.

Cash Dividend

A proportional distribution of cash to shareholders.

Contributed Surplus

Contributed capital resulting from specific equity transactions, including share reacquisition.

Cumulative

Preferred shares feature entitling shareholders to receive current and prior-year dividends before common shareholders.

Declaration Date

The date the board of directors formally approves and announces a dividend to shareholders.

Dividend Yield

Percentage of share price paid in dividends, calculated by dividing dividends per share by share price.

Dividends in Arrears

Undeclared dividends on cumulative preferred shares during a period.

Income Available to Common Shareholders

Net income minus annual preferred dividends for cumulative preferred shares.

Initial Public Offering (IPO)

First offering of a corporation’s shares to the public.

Issued Shares

Portion of authorized shares that has been sold.

Legal Capital

Amount per share retained in the business to protect corporate creditors.

Market Capitalization

Fair value of a company’s equity calculated by multiplying issued shares by share price.

Noncumulative

Preferred shares entitled to current dividends if declared, excluding any unpaid amounts from prior years.

Normal Course Issuer Bid

Reacquisition of a specified percentage of a company’s shares from the public for a set price and period.

Payment Date

Date dividends are paid or distributed to shareholders.

Payout Ratio

Percentage of net income distributed as cash dividends to common shareholders.

Preferred Shares

Share capital with contractual preferences over common shares in certain aspects.

Record Date

Date determining share ownership for dividend purposes.

Retained Earnings Restrictions

Circumstances making a portion of retained earnings unavailable for dividends.

Return on Common Shareholders’ Equity

Profitability measure for common shareholders, calculated by dividing net income minus preferred dividends by average common shareholders’ equity.

Statement of Retained Earnings

Summary of changes in the Retained Earnings account during a period, issued by private companies reporting using ASPE.

Stock Dividend

Proportional distribution of a corporation’s own shares to shareholders.

Stock Split

Issue of additional shares to shareholders with a reduction in legal capital per share.

Weighted Average Number of Common Shares

Average of common shares issued during the year, weighted by the time they have been outstanding.