BUY BACK OF SHARES IN PAKISTAN AS TREASURY SHARES

[Owais Bhai]

Since treasury shares has been allowed first time in Pakistan, the CO84 does not provide accounting as such. There are two methods i.e. at cost and at par. Generally cost method is used whereby actual acquisition cost is recorded in a separate account to be shown on the Balance Sheet as part of equity after net equity balance. Any difference on resell/reissue is kept in another seperate account which is finally closed in the retained earnings.

Can someone further add to this for the benefit of all.