accounting of bonds that can be converted into ordinary shares;
1) Market value method:
In this method, the converted ordinary shares are evaluated based on the market value of shares or bonds (whichever has more reliability) and the difference between the book value of the bonds and the market value of the shares is identified as profit (loss).
2) book value method:
In this method, the book value of bonds is allocated to ordinary shares (including cash) and no profit or loss is recognized.
Joint stock companies
Authorized capital:
The total number of ordinary shares and preferred shares that the company can legally issue according to its articles of association
Treasury shares:
It is the shares that are issued by the company and are bought again by the same company and are still void
It has not been officially sold and is not considered part of the company’s assets. Repurchase of shares is prohibited in Iran’s commercial law.
There are two methods for accounting treasury stock
– 1 cost method –
2 nominal value method
Pledged shares:
Shares that have not been issued yet will be allocated in order to meet the subscription conditions.
Types of joint stock companies
– Ordinary joint stock company
– Private joint stock company
Types of stocks
– normal, premium:
– With nominal value and without nominal value (issuing shares without nominal value is prohibited in Iran)
– Named shares and anonymous shares
Types of premium shares
* Preferred shares without accumulated interest and without participation rights:
In this type of preferred stock, the holder only receives annual profits
It also receives current limited to a percentage of the nominal value.
* Premium shares with accumulated profit and without the right to participate in profit:
In this type of preferred stock, the holder of that deferred interest
Previous years and the current year’s profit is limited to a percentage of the nominal value
* Preferred shares without accumulated interest with the right to participate fully in the profit:
In this type of preferred stock, the holder of it is additionally
On receiving the current year’s profit, in the remaining profit after deducting the ordinary dividend with the premium dividend rate
It is calculated according to the nominal value of the shares
* Preferred shares without accumulated interest with limited profit participation rights:
These shareholders in addition to receiving profits
At the set rate, up to a certain percentage, they can also earn additional profit, which is based on the nominal value of the preferred shares
will receive
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ