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Debt equity ratio test( buy back of shares)
Accountancy
Is unpaid didvidend, current liabilities are debt?
Answers (6)
Thread Starter
Subash ChandraboseIs share option outstanding Alc an bonus shares included in share holders funds
You mean to ask whether it can be used for bonus shate issue? The answer is no - because it's for the purpose of ESOP [Market value of shares and exercise price]
Sahibdeep Singh
You mean to ask whether it can be used for bonus shate issue? The answer is no - because it's for the purpose of ESOP [Market value of shares and exercise price]
For calculating debt to equity ratio 2:1 ( test) In that eq ,shall we take share option outstanding Alc also?
Thread Starter
Subash ChandraboseFor calculating debt to equity ratio 2:1 ( test) In that eq ,shall we take share option outstanding Alc also?
As per the test "the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back is not more than twice the paid-up capital and its free reserves" and share option outstanding a/c doesnt fall under paid-up capital nor free reserves
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