What is share premium in SAP (EPM-FC-SK - FC Starter Kit for IFRS)?

SAP Term: share premium

• Component: EPM-FC-SK

• Component Name: FC Starter Kit for IFRS

• Description: Capital that a company raises upon issuing shares that is in excess of the nominal value of the shares consolidation term, as employed within the International Accounting Standards IAS and the International Financial Reporting Standards IFRS.

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• Key Concepts: 
  Share premium is a term used in the SAP EPM-FC-SK FC Starter Kit for IFRS. It is the difference between the nominal value of a share and the amount paid by the shareholder when they purchase it. This difference is recorded as a liability on the company's balance sheet. 
  
  How to use it: 
  The share premium can be used to fund investments or acquisitions, or to pay dividends to shareholders. It can also be used to pay off debt or to finance other activities. The share premium can also be used to increase the company's capital base, which can help it to attract more investors and increase its market value. 
  
  Tips & Tricks: 
  When using the share premium, it is important to ensure that all transactions are properly documented and accounted for. This will help to ensure that the company's financial statements are accurate and up-to-date. Additionally, it is important to consider any tax implications that may arise from using the share premium. 
  
  Related Information: 
  The share premium is closely related to other accounting terms such as capital reserves, retained earnings, and treasury shares. It is important to understand how these terms interact with each other in order to accurately record and report financial information. Additionally, it is important to understand how the share premium affects the company's financial statements and its overall financial health.