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BUY BACK OF EQUITY

Accountancy

Can securities premium be used for CRR creation as per the buy back provisions or not


R Yashwanth Kumar

R Yashwanth Kumar

CA Final

53K+

28-Nov-22 12:51

211

Answers (2)

It can be used. But in textbook, they have followed another rules of Companies act . So,they do not use it for CRR.Follow only this for exam. If you use it,they will mark wrong for the answer


Shankari C

Shankari C

CA Inter

12K+

28-Nov-22 15:32

Generally securities premium can be used. But companies whose financial statements are complied with Accounting Standards under sec 133 cannot utilise its securities premium to provide for redemption. For exam purpose, it is assumed that the company is prescribed under sec 133. So don't use securities premium. Use only free reserves eg P/L Hope its helpful


Leela Eswar

Leela Eswar

CA Inter

5K+

28-Nov-22 15:40

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