Corporations are active purchasers of their own stock for their Treasury. This article discusses the cost and par value methods of accounting for Treasury stock, the traditional reasons for repurchases, required disclosures and the increase in EPS associated with repurchases

Most financial professionals recognize that share repurchases, all other things equal, should increase a firm's stock price and earnings per share. Our goal is to provide financial executives, investment analysts, and shareholders with a practical understanding of the accounting and financial...