Hi Accounting Gurus
I have a question about journal entry for ordinary shares. Hope someone can help.
Just say a company called Tesla issues 100 ordinary shares with $1 per share in 2020.
And lets say, Mr. investor invested the money for those 100 shares, below journals are booked.
From Tesla........
Dr cash $100
Cr ordinary shares $100
From Mr investor....
Dr stock asset $100
Cr cash $100
In year 2021 (one year later), the share price is up in the stock market, and this time it's $1.5 per share . I know from buyers side, the Mr. investor will do mark to market entry, as below;
Dr stock $50
Cr revaluation reserve $50
I wonder if Tesla also does the revelation for its own stock based on the current market price? If so, how would the entry be?
Thanks in advance
Sowrudy
Journal entries for ordinary shares
Re: Journal entries for ordinary shares
Tesla has nothing to do
Besides, if Mr investor hasn't opted for FVTOCI option, the gain of 50 should goes to P&L
Besides, if Mr investor hasn't opted for FVTOCI option, the gain of 50 should goes to P&L
Last edited by Leo on 10 May 2022, 13:24, edited 1 time in total.
Re: Journal entries for ordinary shares
..and what are Investor's motivations for holding equity...
Re: Journal entries for ordinary shares
In this scenario, the investor is holding it for long term
Re: Journal entries for ordinary shares
as Leo wrote, the issuer does not remeasure financial instruments classified as equity
https://ifrscommunity.com/knowledge-bas ... -as-equity
https://ifrscommunity.com/knowledge-bas ... -as-equity