Tag Archives | Bonus Shares

Bonus Shares: Meaning and Advantages | Company

In this article we will discuss about:- 1. Meaning of Bonus Shares 2. Advantages of the Issue of Bonus Shares 3. Guidelines 4. Accounting Treatment. Meaning of Bonus Shares: Sometimes, a large amount of reserves are accumulated with the companies which are undistributed past profits, and the companies like to distribute these accumulated profits. In such cases, the company may [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Bonus Shares|Comments Off on Bonus Shares: Meaning and Advantages | Company

Issue of Bonus Shares

Bonus shares are the shares allotted to existing equity shareholders without any consideration being received from them, in cash or in kind. They are issued to capitalize profits of the company. Bonus shares can be issued only if Articles of Association permit such an issue. SEBI Guidelines Regarding Issue of Bonus Shares: SEBI has issued certain guidelines regarding issue of [...]

By |2016-06-28T10:12:43+00:00June 28, 2016|Bonus Shares|Comments Off on Issue of Bonus Shares

Bonus Shares out of Pre-acquisition and Post Acquisition Profits

Issue of bonus shares by the subsidiary company increases the number of shares held by the holding company without changing the cost of investment. While preparing a consolidated balance sheet, its treatment will differ depending upon the source from where the bonus shares have been issued by the subsidiary company. Bonus Shares out of Pre-acquisition Profits: If the subsidiary company [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Bonus Shares out of Pre-acquisition and Post Acquisition Profits
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