Friday, May 14, 2010

Authorized Share Capital, Issued Capital, Paid-up Capital

How do you distinguish between Authorized Share Capital, Issued Capital, and Paid-up Capital in a corporation?

Accounting Answer:

Authorized capital is the amount of shares authorized by the SEC and corporation charter to issue.

Issue Capital is the number of shares actually issued and collected by the corporation.

Paid-up capital is composed of the total stockholders equity before retained earnings are subtracted

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.