What are unexchanged shares and what will be its accounting effect?

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.