Rights issue and Useful economic life: Difference between pages

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imported>Doug Williamson
m (Link with Dividend irrelevancy theory page.)
 
imported>Doug Williamson
(Expand definition.)
 
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A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.  
''Accounting.'' 
 
The period over which the present owner of an asset will derive economic benefits from its use.
 
 
Using depreciation or amortisation, the book values of fixed assets are generally written down over their remaining useful economical life, to their residual value.


Existing shareholders have, under UK law, pre-emption rights.  This means that they generally have first refusal on the purchase of any new equity shares.




== See also ==
== See also ==
* [[Bonus issue]]
* [[Amortisation]]
* [[Dividend irrelevancy theory]]
* [[Depreciation]]
* [[Headroom]]
* [[Fixed assets]]
* [[Nil paid]]
* [[Net book value]]
* [[Option premium]]
* [[Reducing balance ]]
* [[Pre-emption rights]]
* [[Residual value]]
* [[Trombone]]
* [[Straight line ]]


[[Category:Equity]]
[[Category:Planning_and_projects]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Manage_risks]]
[[Category:Technology]]

Revision as of 15:54, 20 December 2020

Accounting.

The period over which the present owner of an asset will derive economic benefits from its use.


Using depreciation or amortisation, the book values of fixed assets are generally written down over their remaining useful economical life, to their residual value.


See also