Share Repurchase

Hi All,

Got a question today about Share buybacks.

I answered that there was no income statement effect - and got the question wrong - but am confused as to why ?

I dont see the income statement being involved @ all ? Where am I going wrong ?

Surely its a Assets and Equity transaction on the Balance sheet ?

Have looked around on the net - cant find a decent explanation anywhere.

(http://www.investopedia.com/articles/investing/112013/impact-share-repurchases.asp) says there is an obvious effect - but I dont see it ?

Thanks in advance,
Steve