UK Amir

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Hi,
I need some help in balance sheet presentation of share money deposit. My q is:

If i depositted cash in the company in uk cash for the purpose of issuing shares but on the day shares have not issued yet. can i shoe it in equity as share money and cash in cash in hand?

Thanks

Amir
e: (e-mail address removed)

 

[Fumita]

Depends,

Your syntax is a tad difficult to decipher but if I understand correctly you want to know the answer to:

capital inflow with cash consideration in exchange for O. Shares.
Shares have not been issued yet. but the consideration has been received
Do you still record the transaction as though the shares were issued?

Answer: Yes, but with a note to the accounts.

As the transaction has been recognised and completed in effect (You've received the cash...) it would classify as a material misstatement if you fail to.

If you DON'T recognise the share impact you would not be presenting a true and fair view of the company at the BS date due to artificially increasing your cash balance without also recognising the corresponding obligation (the shares)

You write the note to clarify the actual issue is not yet complete...

 

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Thanks for the reply.