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Hello Mike,
I would greatly appreciate if you could state the main purpose of a share premium account.
I found little about it on the text.Thank you in advance.
SP
Hi
There are 4 uses of the share premium account:
To write off preliminary formation expense
To provide for the premium payable on the redemption of shares or debentures
To write off the discount allowed on, the commissions paid on, or the expenses of any issue of shares or debentures
To finance the issue of fully paid bonus shares
Ok?
thank you Mike,
yer, I will take this answer and learn it by heart – I am not familiar with none of those terms yet
🙂
Cheers
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