While going through B/s of company for study purpose - I saw a line item Unexchanged Shares in I/s and in B/S (liability side). May anyone explain me what are Unexchanged Shares? I googled it but was not able to get a proper explanation for it.

Hey @Kushyb , it seems to be a minority case where M&A event has occurred in a target company (for shares in part or whole), and the shareholder of the acquired company has not exchanged its shareholding with the newly issues shares. In the Acquirer's B/S it would then have a line item called unexchanged shares to account for these.

A Student Lounge Discussion About What Are Unexchanged Shares And What Will Be Its Accounting Effect?

Add A Reply

This topic has 1 reply, 2 voices, and was last updated Jan-187:55 am by Sophie Macon.

Author

Posts
- Kushyb
  Participant
  - CFA Level 2
  01 Jan 2018 at 7:40 am
  Up
  3
  ::
  While going through B/s of company for study purpose – I saw a line item Unexchanged Shares in I/s and in B/S (liability side). May anyone explain me what are Unexchanged Shares? I googled it but was not able to get a proper explanation for it.
- Sophie Macon
  Keymaster
  01 Jan 2018 at 7:55 am
  Up
  1
  ::
  Hey @Kushyb‌ , it seems to be a minority case where M&A event has occurred in a target company (for shares in part or whole), and the shareholder of the acquired company has not exchanged its shareholding with the newly issues shares.
  
  In the Acquirer’s B/S it would then have a line item called unexchanged shares to account for these.
Author

Posts

Viewing 1 reply thread

You must be logged in to reply to this topic.