Treasury Shares
Code: 3240
👁 Views: 88
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Represents the value of shares that the company has repurchased from shareholders. This account appears as a negative number (deduction) from total equity.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 32
Financial Instruments: Presentation
US GAAP
ASC 505
Equity
⚠️ Key Difference Between IFRS and US GAAP
GAAP has the same general principle, but allows two methods of recording (the cost method or the nominal value method).
❓ Frequently Asked Questions
Q: What are treasury shares?
A: Shares repurchased by the company from shareholders, appearing as a negative number (deduction) from equity.
Q: Are gains or losses from treasury share sales recognized in the income statement?
A: No, any gain or loss from treasury share sales appears in equity (share premium) and does not affect the income statement.