- This topic has 1 reply, 2 voices, and was last updated 9 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September & December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Share issue
Please explain to me listed questions.
a) What is the accounting treatment for:
(1) Right issue
(2) Bonus issue
b) Why does bonus issue does not multiply by the time weighting factor?
a) (1) Rights issue – Dr Cash with the total amount received, Credit Share Capital with the nominal value of the shares issued, Credit Share Premium with the amount by which the exercise price exceeds the nominal value
a) (2) Bonus issue – Debit Share Premium Account (or any other distributable reserve or the Capital Redemption Reserve), Credit Share Capital Account
b) Are you talking here about an earnings per share question? It doesn’t matter whether you are or you aren’t, really. The bonus issued shares ARE multiplied by the time weighting. What makes you think they aren’t?