Bonus Shares Vs Stock Splits In Economic Management from HelpwithAssignment.com

Subtopics include financial accounting, cost accounting, management accounting, internal auditing external auditing, international accounting, governmental and not-for-profit accounting and taxes. The statement of shareholders' equity shows how the shareholders' equity changed over the period.

The current accounting professional body that sets standards is known as the Financial Accounting Standards Board (FASB). The FASB issues standards called Statements of Financial Accounting Standards (SFAS).

Introduction to Financial Accounting and GAAP

Definition: Bonus Shares are those shares which are issued to shareholders' by a healthy company without any cost.

<!--[if !supportLists]-->· <!--[endif]-->In this case the Shareholders' proportional ownership remains unchanged.

<!--[if !supportLists]-->· <!--[endif]-->The book value per share, the earnings per share and the market price per share decrease but the number of shares increased.

Part A: Equity Portion before Bonus Issue

Paid-up Share Capital

Paid-up Share Capital

<!--[if !supportLists]-->· <!--[endif]-->The Bonus issue may likely to bring the market price per share within a more popular range.

Part A: Equity Portion Before Stock Split

Paid-up Share Capital

Paid-up Share Capital

Comparison of Bonus Shares and Stock Splits:

Bonus Issue

The book value per share, earnings per share and the market price per share decline.