Qn: FSA

Mukaranga

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The calculation for weighted average has a restatement factor. How to you arrive at the value.

Thank you
 
I'm unsure about what you're referring to. I'm assuming you mean from weight-average to moving-average - correct??
 
Am sorry about the late reply to your responses. I will take this e.g from Kieso et al.

Date Share Changes Shares Outstanding
Jan 1 begining balance 180,000
May 1 Purchased 30,000 treasury shares 30,000
150,000

July 1 300,000 additional shares 300,000
450,000
December 31 Issued 50,000 shares 50,000
500,000
............................................................................................................................................
Calculation of Weighted Average number of shares

date Shares Out'nding Restatement Fraction of Year Weighted Shares
Jan1- May1 180,000 3 4/12 180,000
May1-Dec31 150,000 3 8/12 300,000
Total 480,000

My Qn:

What is the restatement factor 3, and how do u calculate it?

Forgive me if there are typos, am in a hurry.

Thank you.
 
How did shares outstanding go from 150,000 (May 1st) to 450,000 (July 1st)??

Possibly a 3 for 1 stock split or stock dividend??
 
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