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November 2023

From Published Accounts

By Himanshu Kishnadwala, Chartered Accountant
Reading Time 3 mins

COMPILERS’ NOTE

The Companies Act, 2013 prohibits companies from holding their own shares. However, in certain cases, companies hold their own shares as ‘treasury shares’ due to amalgamation schemes approved by Courts / NCLT or under Employee Benefit schemes. Given below are disclosures in ‘Statement of Significant Accounting Policies’ for the year ended 31st March, 2023, by companies for such shares.

ORACLE LTD

Treasury Shares

The Company had created an Employee Benefit Trust (‘EBT’) to provide share-based payment to its employees. The EBT was used as a vehicle for distributing shares to employees under the employee remuneration schemes. The shares held by EBT are treated as treasury shares.

Own equity instruments (treasury shares) are recognised at cost and deducted from equity. Gain or loss is recognised in Other Equity on the sale of the Company’s own equity instruments.

INDIAN OIL CORPORATION LTD (IOCL)

Treasury Shares

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