Chapter 11, Pg 8 , First Para

Discussion in 'SA2' started by Jishnu Bhatia, Jan 6, 2019.

  1. Jishnu Bhatia

    Jishnu Bhatia Member

    Hi folks,

    Could someone please explain why the value of shareholder transfers in respect of future bonus declarations is shown in own funds?
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi

    This is because the future shareholder transfers, as the name suggests, ultimately belongs to the shareholder but cannot be distributed yet as bonuses have yet to be declared. Therefore the capital is still tied up in the company and as such are within own funds.

    Hope this helps
    Thanks
    Em
     

Share This Page