Jason, Have a look at these articles on stock transactions for companies issuing and buying back stock (https://www.fool.com/knowledge-center/does-the-issuance-of-common-stock-increase-common.aspx, https://www.cliffsnotes.com/study-guides/accounting/accounting-principles-ii/corporations/accounting-for-stock-transactions). While these relate specifically to the US, the general principles in treating such transactions will be similar, although the applicable legislation may differ and you should get professional advice in your jurisdiction on this.
Your company, if it trades in its own stock (this is illegal in many/most jurisdictions although individuals who run a company may own stock in the company), would treat the stock it trades in as an asset. The issued stock is only ever valued at its issue price in equity, i.e. the cash you receive in exchange for shares in the company. Stock options are also discussed here https://study.com/academy/lesson/accounting-for-stock-options-equity-compensation-plans.html or https://en.wikipedia.org/wiki/Stock_option_expensing. Again what is presented here is a guide only. If your corporation legislation is different it may differ in detail but it is unlikely the general methodology of the treatment will be too much different. Why would you need to do a stock split on the equity? You are not dealing with a situation where you may have bought lots of stock at different times and different prices and have to determine the capital gains applying to each lot. This only applies if you are trading stock in other companies, not to issued stock. David Cousens ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
