# Stockholders' Equity Accounts

## Метаданные

- **Канал:** Edspira
- **YouTube:** https://www.youtube.com/watch?v=0_7qEhQqf_M
- **Дата:** 06.04.2026
- **Длительность:** 9:39
- **Просмотры:** 765
- **Источник:** https://ekstraktznaniy.ru/video/49530

## Описание

The various stockholders' equity accounts that appear on a balance sheet (aka statement of financial position) include:
-Common stock (the par value paid by investors for common shares)
-Preferred stock (the par value paid by investors for preferred shares)
-Additional paid-in capital (amounts paid by investors in excess of the par value)
-Treasury stock (shares repurchased, but not retired, by the company)
-Retained earnings (profits that have been re-invested in the company)
-Accumulated other comprehensive income (gains and losses that bypassed net income)
-Noncontrolling interest (the claims of noncontrolling shareholders against the net assets of subsidiaries controlled by the parent company)
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## Транскрипт

### Introduction []

In this video, we're going to discuss the various stockholders equity accounts for an actual company, Occidental Petroleum. So, you remember that our favorite accounting equation tells us that assets are equal to liabilities plus stockholders equity. And we can see the right-hand side of that balance sheet presented here. Okay, we don't have any assets here. I didn't show you that part, but we've got the liabilities here. And then below that, we have the equity accounts here. So, what I'm going to do now, I'm just going to drill down and we're going to focus on the equity accounts break them out one by one. And I chose this company because it's a really good representation of all the stockholders equity accounts that you could see. So

### Equity Accounts [0:41]

now here, we've just got the equity section from what I showed you above. In here, we have the account balances as of December 31st, 2025. And in this column 2024. Now, we're just going to go by the go through these accounts one by one. We've got common stock, additional paid-in capital, and so forth. So, the contributed capital, common stock, preferred stock, additional paid-in capital, each of those amounts which you see right here's the preferred stock, here's the common stock, here's the additional paid-in capital. What those accounts represent is money that was invested in Occidental Petroleum by shareholders. So, this amount this amount, and these amounts are all in millions. So, if you see this here, 21,008, it's not actually 21,008, it's 21 billion. Okay, so those three amounts together represent equity capital that was put into the company by investors. It's not the market value of those shares right now. It's just at some point in the past, investors put money into the company. Now, all corporations, all corporations are going to have this account right here, common stock. If it's a corporation, it's going to have common shares. Preferred shares, the majority of companies will not have. So, I chose a company that did have preferred shares so you could see that account, but most companies are not going to have preferred stock. But they'll always have common stock. And then the additional paid-in capital, this right here, represents amounts of money received by the company from investors above the par value. You say, "What's the par value? " Well, for the common stock, the par value for these shares, 20 cents per share par value. The company sets the par value. So, let's just say there was a company that had a par value like this of 20 cents per share, and an investor paid $10 for a share. So, if the investor pays $10 and the par value is 20 cents, that means there was $9. 80 paid for the share over and above the par value. Because the company received $10, 20 cents of that went toward the par value, then the difference, $9. 80, would be the additional paid-in capital in that example. So, that's what we're talking about when we're talking about additional paid-in capital. And now, you see that this amount is a lot larger than the common stock amount because the par value is usually set very low. And we notice that also the preferred stock also has a par value. Now, treasury stock, treasury stock is shares that the company repurchased from shareholders. So, they issued shares, then they bought the shares back, but they did not retire the shares. They're still hanging on to them. This is a contra-equity account, which is why it is in parentheses. Remember, in accounting, we put things in parentheses when we're indicating they're being subtracted. So, when the company buys back these shares, so it says, "Look, they bought back 228 million shares. " So, when they buy these shares back, this is going to reduce the company's equity. Equity is going down. So, this is not Treasury stock is not them issuing shares, it's buying back shares that they previously issued and hanging on to them. Now, retained earnings are profits that the company has had in the past that have been reinvested in the company. Okay, so we have over 21 billion dollars of retained earnings. That is not the cash balance. That's a common misconception. People think, "Oh, they've got this retained earnings, they can just pull that money out. " This is money that was reinvested in the company. So, retained earnings, remember that goes up when a company has net income, and it goes down when the company declares dividends. Cuz if the company is giving out dividends, then they are not retaining the earnings, they are giving the earnings back to shareholders. So, retained earnings is the profits that have been kept and reinvested in the business. So, this is earned capital. Initially, when a company just gets start, all they have is contributed capital cuz they haven't made any money yet. Occidental Petroleum had made some money, they had reinvested some of it in the business, so they have this retained earnings. Now, if retained earnings has a debit balance, in other words, if it's negative, we call it accumulated deficit. So, you might be looking at a company and not see retained earnings and say, "Oh, where's retained earnings? " And you see something that's accumulated deficit. That just means that the retained earnings is negative. Here, an account that you'll see for companies, accumulated other comprehensive income, or AOCI for short. This confuses some people. Basically, what it is, this is where other comprehensive income gets closed out to. Other comprehensive income represents gains and losses that bypass the income statement. So, these are gains and losses that did not affect net income, they went to other comprehensive income. It is often reported on a statement of comprehensive income. So, we've got net income, but then we've got this other comprehensive income, and the other comprehensive income gets closed out at the end of the period to accumulated other comprehensive income, which you could see here is an equity account appearing on the balance sheet. Just like revenue and expense accounts, they're temporary accounts that get closed out to retained earnings. OCI is a temporary account that gets closed out to accumulated OCI. Now, all of these things together, so all these things together are netted and they give this stockholders equity account amount. So, you see this total right here, this 36 billion total stockholders equity. But then you see this non-controlling interest. And then there's total equity. So, this is confusing, too. People get confused by that and say, "Hey, what the heck is going on? We have total stockholders equity, and then we got total equity. What is the difference? " So, this here, total stockholders equity, they could have said total equity attributable to shareholders of Occidental Petroleum. This is specific to Occidental Petroleum. Then you say, "Well, then what the heck is this? What is going on with that? " So, the non-controlling interest, you'll see that on a balance sheet when a company has a subsidiary. So, they have some other company that they control. They have at least one other company that they control, but they don't have they don't own 100% of it. So, let's just say that a company owns 75% of another company. So, one one of its subsidiaries. So, because they have a controlling interest, they would record 100% of that subsidiary's assets and liabilities on their balance sheet. So, the parent

### NonControlled Interest [7:55]

company would have 100% of the subsidiary's assets and liabilities, even though they only own 75% of the subsidiary. And you say, "Oh, but they don't own 100% of it. Why how do they get all the assets and liabilities? What's going on? " Non-controlling interest represents the share, like the share of that subsidiary's net assets. Cuz there's those other shareholders that own the other 25%. And this right here, so that 564 million, represents the the non-controlling shareholders, their share of the net assets of the subsidiaries for which Occidental has controlling interest and has thus reported all the assets and liabilities of the subsidiaries on its balance sheet. But that Occidental doesn't have 100% ownership of. So, that's what that is. So, then this total equity here, the total equity, people would say say, "Oh, this is the total equity of the consolidated entity. " So, non-controlling interest here is being added to the equity attributable to Occidental shareholders. So, if you're a shareholder of Occidental and you're like, "Look, I just care about the equity attributable to the company that I'm invested in. " This number right here, the 36 billion, that's what you care about. But if you were curious, you say, "Well, what about the whole consolidated entity, even including the the equity for these non-controlling shareholders, the total equity of this entire consolidated entity would be 36. 598 billion.