Right issue
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 February 2012
why is it that investors make entry for right issue when they exercise the right and not when the right is announced ?
16 February 2012
When the right is announced, the shareholder does not receive any asset. He has a right to purchase the share.
He may choose to exercise the right or renounce it.
Only when the final decision is taken the shareholder knows for sure that he will receive the share.
Therefore, entry is recorded when the right is exercised because such exercise results in an asset.
He may choose to exercise the right or renounce it.
Only when the final decision is taken the shareholder knows for sure that he will receive the share.
Therefore, entry is recorded when the right is exercised because such exercise results in an asset.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
