The shareholders of company A have set up company B
They are issuing share capital in company B and it is being paid for by an investment in company A
I believe the investment should be shown in the accounts at the actual transferred value
However, B is a Plc
A is an overseas company
A has been valued considerably higher than the transfer value
Therefore clients want B to reflect actual value, rather than transfer value
Please help
Replies (3)
Please login or register to join the discussion.
Presumably by "actual value" you mean the nominal value of the shares issued.
The issue of shares should be accounted for at the full value of the consideration received for their issue. The excess of that value over the nominal value of the shares should be credited to share premium.