- This topic has 2 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
What is the difference between ‘Equity share’ and ‘share capital’ in the F7 context? I found some questions used the term ‘equity shares’ and then ‘share capital’ in theirs answers.
One possible difference,in my mind, would be that equity signifies “residual interest in assets of entity after deducting all of its liabilities”.This suggests to me the characteristics of ordinary share capital if speaking of a company entity. Other types of share capital such as preference share capital (redeemable) is in substance debt finance and must be treated as such in financial statements.Additionally,share capital with voting rights will have to be treated differently from similar capital without voting rights when dealing with some consolidation questions.
- You must be logged in to reply to this topic.