A share buyback scheme

1. What are the implications arising from the definition of equity in Framework 2014?

2. How does equity differ from assets and liabilities?  3.How do reserves differ from retained earnings?  4. What is the nature of the ‘applications’ account used when a company invites the public to subscribe for its shares?  5. (a) Under what conditions may a share buyback scheme occur? (b) What are possible reasons for a company to buy back its shares?

(c) The Australian Securities Exchange posts company announcements on its website (). Search these announcements to find the announcement of a share buyback scheme. From this announcement, identify the stated motivation of the company for undertaking such a scheme.