A lsquowhen companies repurchase their own shares the, Ask an Expert

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(a) ‘When companies repurchase their own shares, the accounting depends on the purpose for which the shares are repurchased.' Explain.

(b) ‘When a company retires shares, it must pay the shareholders an amount equal to the original par value and additional capital contributed for those shares plus the shareholders' fractional portion of retained earnings.' Do you agree? Why?

(d) Are treasury shares an asset? Explain.

(e) Gains and losses are not possible from a company's acquiring or selling its own shares. Do you agree? Why?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92094425

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