What is the treatment of premium on issue of debentures/shares in a cash flow statement?
Premium on shares
When a company decides to issue its shares at price higher than the par value, the difference between the share price and the par value is termed as premium.
Answer and Explanation:
Premium on issue of debentures/shares are reflected in the Cash Flow Statement under the head Cash Flow from Financing activities as they are non-operating in nature.
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from Financial Accounting: Help and ReviewChapter 5 / Lesson 26