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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Buying shares in exchange for own shares
Hi,
There are a few questions about acquiring a percentage of a company that includes the phrase “by exchanging ‘x’ shares in entity A for ‘y’ shares in entity B”
Can you explain a general way (and why) of calculating how much was paid for this percentage, and how this affects the share capital, share premium of both entities?
Thank you
I do not know where you have found these questions, because this only gets asked in the context of consolidations and even then is unlikely in Paper FA.
I cannot give you a general way – it depends on the question. If you are confused by a question that is in the BPP Revision Kit then say which question and I will explain.