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John Moffat.
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yusra97
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Issued share capital is brought more into line with assets employed in the entity ?
Sir what does this mean? This is an advantage of a bonus issue..
John Moffat
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A bonus issue increases the share capital (and reduces reserves).
Given that capital + reserves is always equal to the net assets, then increasing the capital and reducing the reserves automatically means that the share capital is nearer to the net assets.(However, although I don’t know from where you are quoting this, it is not really much of an advantage – the total shown as owing to shareholders is capital + reserves, and this total does not change.)
yusra97
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