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Employee stock option plan
Accountancy
What's the difference between face value and securities premium
Answers (2)
Security premium is the account used when shares are issued at a premium.ie) when shares are issued at price above the face value.Face value is the registered price of a share in company's capital clause.
Face value is the registered price of the share of the company itâ??s also known as par value. When the shares are issued above the face value that at a premium, the premium amount to transferred to securities premium A/c. For example, the face value is â?¹10 company issues the share at â?¹15 here 5 is the premium amount. Bank A/c Dr. â?¹15 To Equity Share Capital A/c â?¹10 To Securities Premium A/c â?¹ 5
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