- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Company accounts
Dear sir
How is any premium on an issue of shares treated?
My answer was revenue reserve, but to see it was capital reserve? How come I’m wrong?
The share premium account is always a capital reserve!
Revenue reserves only relate to profits that have been earned – issuing shares at a premium is not earning profit, and the share premium account cannot be distributed as dividend.
I can only assume you are wrong because you forgot!
I suggest that you watch our free lectures on Company accounts.
Sir is debentures relevant in f3?
Yes! Debentures are the same thing as bonds and loan stock – long-term borrowings.