Small Stock Dividend Retained Earnings Cap Checker
Audit caller small-stock-dividend size policy and fair-value retained-earnings transfer split into par/APIC, exposing funding deficit without silently capping distribution; applicable accounting framework and authorization remain external.
Description
A small-stock-dividend scenario transfers fair value from retained earnings and splits it into par capital and APIC.
A small-stock-dividend scenario transfers fair value from retained earnings and splits it into par capital and APIC. Funding shortfalls remain explicit.1
The returned values include Dividend size basis points, Within caller small dividend policy, Required retained earnings transfer minor, Share capital increase minor, Apic increase minor, Signed retained earnings margin minor, Retained earnings covers transfer. The How section below explains the calculation, input rules and interpretation.
When to use Small Stock Dividend Retained Earnings Cap Checker
Use Small Stock Dividend Retained Earnings Cap Checker when you need to evaluate the supplied records under the calculation and evidence rules below. No default small-dividend threshold, framework applicability or distribution authorization is supplied.
Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
How to use Small Stock Dividend Retained Earnings Cap Checker and understand its results
- Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
- Enter existingShares, dividendShares, fairValuePerShareMinor, parValuePerShareMinor, availableRetainedEarningsMinor, callerSmallDividendUpperBasisPoints using the field table and calculation rules, then run the tool.
- Read dividendSizeBasisPoints, withinCallerSmallDividendPolicy, requiredRetainedEarningsTransferMinor, shareCapitalIncreaseMinor, apicIncreaseMinor, signedRetainedEarningsMarginMinor, retainedEarningsCoversTransfer. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| existingShares | Existing shares | number | Required |
| dividendShares | Dividend shares | number | Required |
| fairValuePerShareMinor | Fair value per share minor | number | Required |
| parValuePerShareMinor | Par value per share minor | number | Required |
| availableRetainedEarningsMinor | Available retained earnings minor | number | Required |
| callerSmallDividendUpperBasisPoints | Caller small dividend upper basis points | number | Required |
Enter integer existing shares 1–1000000000 and dividend shares 0–1000000000, nonnegative safe-integer fair/par values and retained earnings, and integer size ceiling 0–10000 basis points. Require fair≥par and safe products. Return size, exact integer inclusive policy comparison, required transfer, par increase, residual APIC, signed retained-earnings margin and funding flag. Do not cap the transfer to available retained earnings.
sizeBps=10000×dividendShares/existingShares; transfer=dividendShares×fairValue Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| dividendSizeBasisPoints | Dividend size basis points | number |
| withinCallerSmallDividendPolicy | Within caller small dividend policy | boolean |
| requiredRetainedEarningsTransferMinor | Required retained earnings transfer minor | number |
| shareCapitalIncreaseMinor | Share capital increase minor | number |
| apicIncreaseMinor | Apic increase minor | number |
| signedRetainedEarningsMarginMinor | Signed retained earnings margin minor | number |
| retainedEarningsCoversTransfer | Retained earnings covers transfer | boolean |
{
"input": {
"existingShares": 1000,
"dividendShares": 100,
"fairValuePerShareMinor": 20,
"parValuePerShareMinor": 5,
"availableRetainedEarningsMinor": 1500,
"callerSmallDividendUpperBasisPoints": 2000
},
"output": {
"dividendSizeBasisPoints": 1000,
"withinCallerSmallDividendPolicy": true,
"requiredRetainedEarningsTransferMinor": 2000,
"shareCapitalIncreaseMinor": 500,
"apicIncreaseMinor": 1500,
"signedRetainedEarningsMarginMinor": -500,
"retainedEarningsCoversTransfer": false
}
}Limitations and assumptions
No default small-dividend threshold, framework applicability or distribution authorization is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Treasury Stock Cost Method No Gain Checker: Treasury-stock cost-method reissuance routes the difference from cost through equity accounts. Available treasury APIC absorbs a below-cost shortfall before retained earnings. For a complementary task, use Balance Sheet Equation Balancer A Equals L Plus E Tool: The accounting equation compares net assets with net liabilities plus equity. Signed contra accounts belong in their supplied sections.
References
Similar or alternative tools
- Treasury Stock Cost Method No Gain Checker
Treasury-stock cost-method reissuance routes the difference from cost through equity accounts. Available treasury APIC absorbs a below-cost shortfall before retained earnings.
- Balance Sheet Equation Balancer A Equals L Plus E Tool
The accounting equation compares net assets with net liabilities plus equity. Signed contra accounts belong in their supplied sections.