08-10-2009, 06:58 PM
Dear,
Company A shall not be required to make any entry on account receipts of bonus shares, since these shares shall not increase the net worth of company B because these shares are issued by capitalization of accumulated profits, i.e. bonus shares are movement in equity of issuing company.
However, it shall augment the number of shares held in company B by company A, and the same is required to be disclosed by company A in its financial statements.
For reference, exhibit IAS 27, 28 and IFRS 3
Best Regards,
Company A shall not be required to make any entry on account receipts of bonus shares, since these shares shall not increase the net worth of company B because these shares are issued by capitalization of accumulated profits, i.e. bonus shares are movement in equity of issuing company.
However, it shall augment the number of shares held in company B by company A, and the same is required to be disclosed by company A in its financial statements.
For reference, exhibit IAS 27, 28 and IFRS 3
Best Regards,
