Expand
Resize
Add to favorites
ASC 505-20-20 defines a stock split.

Definition from ASC 505-20-20

An issuance by a corporation of its own common shares to its common shareholders without consideration and under conditions indicating that such action is prompted mainly by a desire to increase the number of outstanding shares for the purpose of effecting a reduction in their unit market price and, thereby, of obtaining wider distribution and improved marketability of the shares. Sometimes called a stock split-up.

ASC 505-20-30-6 states that in the event of a stock split, absent a legal requirement to do so, it is not necessary to transfer the amount from retained earnings to APIC and common stock (for the change in par value). Therefore, the only presentation requirements in the event of a stock split are to update:
  • The shares outstanding
  • The par amount of the stock on the face of the balance sheet
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide