Monetary items and Rights issue: Difference between pages

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''Accounting for the effects of changes in foreign exchange rates.''
A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.  


Monetary items include cash, loans, debtors, creditors and similar assets and liabilities.
Existing shareholders have, under law in the UK, pre-emption rights.


Under IAS 21, monetary items are translated at the foreign exchange rate which applies on the balance sheet reporting date (the 'closing rate').
This means that they generally have first refusal on the purchase of any new equity shares.




== See also ==
== See also ==
* [[Exchange difference]]
* [[Bonus issue]]
* [[Foreign exchange]]
* [[Dividend irrelevancy theory]]
* [[IAS 21]]
* [[Headroom]]
* [[Monetary]]
* [[Initial public offering]]
* [[Non-monetary items]]
* [[Nil paid]]
* [[Translation risk]]
* [[Option premium]]
*[[Placing]]
* [[Pre-emption rights]]
* [[Theoretical ex-rights price]]
* [[Trombone]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]
[[Category:The_business_context]]
[[Category:Risk_reporting]]
[[Category:Corporate_finance]]
[[Category:Cash_management]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Revision as of 06:53, 23 August 2019

A process of issuing new equity shares where they are offered first to existing shareholders in proportion to their existing shareholding.

Existing shareholders have, under law in the UK, pre-emption rights.

This means that they generally have first refusal on the purchase of any new equity shares.


See also