Accounting Principles Board (APB) Opinion No.
Status of Accounting Research Bulletins
b. Issued in October 1966
--> Capital stock acquired (and held)
by the entity that issued such stock.
Treasury stock is
--> reported separately
as a deduction from the total of
(capital stock, additional paid-in capital, and retained earnings.)
Gains on Sales of
--> credited to additional paid-in capital.
Losses on Sales of
--> charged to additional paid-in capital
(up to previous gains on sales of same class of stock)
charged to retained earnings.
Retirement of Treasury
An excess of purchase price over par (or stated) value
--> charged to
additional paid-in capital (limited to pro rata portion)
and retained earnings.
--> may be charged
to retained earnings.