Cashflow – Bonus issue

This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.

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August 10, 2016 at 9:02 pm #332590
Candy
Member
- Topics: 135
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Hi Mike,

IF there is a bonus issue in the year – because bonus issue is ‘free shares’ – and therefore the entity will not receive any cash consideration.

How do we account for this?

Many thanks
August 11, 2016 at 7:36 am #332651
MikeLittle
Keymaster
- Topics: 27
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Dr Share Premium account (or general reserve account or retained earnings account)
Cr Share Capital account
with the nominal value of the bonus shares issued
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