Common Stock Accounting Question

Jun 27, 2012
Reaction score
I was reviewing the latest 10K for Syntel, Inc. (ticker: SYNT) and noticed something in the shareholder equity section I had never seen before.

My limited understanding of accounting for common stock is the shares can either have a par value and anything beyond that is attributed to additional paid-in capital or the shares have no par value and proceeds are simply reflected in the common stock line on the balance sheet.

However, with SYNT they state that the common stock has no par value and yet in the common stock line they simply have "1" indicating a value of 1,000. Furthermore, they have additional paid-in capital which I thought wasn't necessary when common stock has no par value.

Can someone explain to me SYNT's methodology and how this presentation works? Thanks in advance for your time and help.

FYI, the financials can be found here:


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question