Why Does the Issuance of a Stock Dividend or Stock

question 49

Essay

Why does the issuance of a stock dividend or stock split require a restatement (which is applied retroactively), but the issuance or repurchase of shares for cash does not?

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Definitions:

World's Population

The total number of people living on Earth at any given time, an ever-changing figure due to births, deaths, and migration.

Living Standards

The measure of financial wealth, comfortability, possessions in terms of goods, and necessary items afforded to a distinct social class or area.

Birthrates

The number of live births per thousand of the population in a given period, used as an indicator of population growth.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.