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Capital Redemption Reserve
Accountancy
Hello all, here's something I need some clarification on; in buying back shares, there are two ways to do it, fresh issue and thru the CRR creation. The extent to which CRR can be created = F.v of the shares bought back - F.V of the shares issued for such buy back.( This is not referring to fresh issues right? Otherwise there is no reason for CRR ) What does the second part of the above formula reference to?
Answers (4)
Shankari C
Can you be clear about your doubt ?
See that's the hard part communicating doubts online..anyway what I am trying to ask when we issue fresh shares , we don't need to create CRR right? So when we try to determine how much of CRR we need to create why do we need to calculate FV of shares issued for such buy back? We are not issuing fresh shares so what is this "issued shares for buy back"??
Shankari C
Can you be clear about your doubt ?
It's okay dear..I kinda figured it out lol. Something understood. Thankyou
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