share holders equity

sawdanjema · 1 share holders equity Wed Sep 28, 2011 10:15 am

sawdanjema

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please someone explain the term stated capital & share holders equity in simple language!!

sawdanjema · 2 Re: share holders equity Thu Sep 29, 2011 5:36 pm

sawdanjema

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please!!!!

innam · 3 Re: share holders equity Thu Sep 29, 2011 6:04 pm

innam

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sawdanjema wrote:please!!!!

the following is a simplistic explanation maybe an accountant can give you a more detailed one.

stated capital- this is the amount of money/capital that the company has raised from shareholders through the original issue of shares and through subsequent rights issues
eg- taking the new "magic" company in the CSE, RGEM, their stated capital amounts to Rs 24 million which is what they raised from shareholders
http://www.cse.lk/cmt/upload_report_file/770_1314610788450.06.11.pdf

shareholder equity- this is the portion of the company that is owned by the shareholders. basically this will include capital raised from shareholders +reserves (due to revaluation gains etc)+revenues earned throughout the years
eg-taking our "magic" examply of RGEM, you can see that their shareholder equity amounts to Rs 33 million (in simple terms they have raised 24 million in capital and throughout the years the value added for shareholders is 9 million)....i.e. to increase shareholder equity companies have to earn profits from their operations AND/OR revalue their assets.

smallville · 4 Re: share holders equity Thu Sep 29, 2011 6:39 pm

smallville

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innam wrote:

sawdanjema wrote:please!!!!

the following is a simplistic explanation maybe an accountant can give you a more detailed one.

stated capital- this is the amount of money/capital that the company has raised from shareholders through the original issue of shares and through subsequent rights issues
eg- taking the new "magic" company in the CSE, RGEM, their stated capital amounts to Rs 24 million which is what they raised from shareholders
http://www.cse.lk/cmt/upload_report_file/770_1314610788450.06.11.pdf

shareholder equity- this is the portion of the company that is owned by the shareholders. basically this will include capital raised from shareholders +reserves (due to revaluation gains etc)+revenues earned throughout the years
eg-taking our "magic" examply of RGEM, you can see that their shareholder equity amounts to Rs 33 million (in simple terms they have raised 24 million in capital and throughout the years the value added for shareholders is 9 million)....i.e. to increase shareholder equity companies have to earn profits from their operations AND/OR revalue their assets.