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