iv. Although Merck can improve their cash flow by repurchasing and then reselling their stock, they technically cannot disclose treasury stock as an asset because they are dealing within their own equity (treasury stock is a contra-equity account). Classifying treasury stock as an asset would create false financial value for the company. H) i. During 2007, GSK repurchased 285,034,000 shares on the open market. Some of these shares were not held in treasury: of the shares purchased in 2007, 269 million are held in treasury and 16 million have been cancelled. ii. On average, GSK paid £13.09 per repurchased share. iii. U.S. GAAP, this in equity” account is referred to as of “Movements “Statement Stockholder’s Equity.” I)
iv. Although Merck can improve their cash flow by repurchasing and then reselling their stock, they technically cannot disclose treasury stock as an asset because they are dealing within their own equity (treasury stock is a contra-equity account). Classifying treasury stock as an asset would create false financial value for the company. H) i. During 2007, GSK repurchased 285,034,000 shares on the open market. Some of these shares were not held in treasury: of the shares purchased in 2007, 269 million are held in treasury and 16 million have been cancelled. ii. On average, GSK paid £13.09 per repurchased share. iii. U.S. GAAP, this “Movements in equity” account is referred to as “Statement of Stockholder’s Equity.” I)