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Issued capital

Issued share capital is the nominal value of shares actually issued, distinguished from proceeds above nominal value. The number of shares multiplied by their nominal amount gives the share capital. The entry for an issue also records cash received and any share premium. The rights attached to the shares depend on their class and the company's governing documents. Issued shares may be ordinary or preference shares, subject to their contractual terms.

Worked example

1,000 issued shares of 1 nominal value create 1,000 share capital.

Common mistake

A 1,000-share issue at 3 generates a further 2,000 share premium, not 3,000 share capital.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FA Direct September 2026–June 2027
ACCA K1 Direct July 2027–August 2028
CIMA BA3 Direct Official assessment-window verification pending
FIA FFA Direct September 2026–June 2027

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