What does it mean to split, consolidate or reclassify my shares?
- Article ID
- ias-5096
- Article Name
- What does it mean to split, consolidate or reclassify my shares?
- Created Date
- 4th December 2007
- Product
- IRIS Accounts Production
- Problem
- Not sure which share event to use when you are altering your share capital? Is it a share split, share consolidation or share reclassification?
- Resolution
- Use the details below as a guide to which event to use within the share register: Share Split: Registered capital before and after remains the same e.g. £100 but: – number of shares has increased; and – nominal value has decreased EXAMPLE: – Before = 100 Ord A £1 shares – After = 1000 Ord A 10p shares Share Consolidation: Registered capital before and after remains the same e.g. £100 but: – number of shares has decreased; and – nominal value has increased EXAMPLE: – Before = 100 Ord A £1 shares – After = 10 Ord A £10 shares Share Reclassification: Registered capital before and after remains the same e.g. £100 but: – number of shares stays the same; and – nominal value stays the same EXAMPLE: – Before = 100 Ord A £1 shares – After = 100 Ord B £1 shares
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