What is 'capital stock' in SAP FI-LC - Consolidation?

capital stock - Overview

• Component: FI-LC

• Component Name: Consolidation

• Description: The capital stock of a company that is registered with a country's authorities.

capital stock - Details

• 
  Key Concepts: 
  Capital stock is a term used in the Financial Consolidation (FI-LC) component of SAP. It is the total amount of money that a company has invested in its own shares, and it is used to calculate the company's equity. Capital stock is also known as share capital or paid-in capital. 
  
  How to use it: 
  In SAP, capital stock is used to calculate the company's equity. This is done by subtracting the company's liabilities from its assets. The resulting figure is then divided by the number of shares outstanding, which gives the company's equity per share. 
  
  Tips & Tricks: 
  When calculating capital stock in SAP, it is important to remember that only shares that have been issued and paid for are included in the calculation. Any shares that have been issued but not yet paid for should not be included. 
  
  Related Information: 
  Capital stock can also be used to calculate a company's book value per share. This is done by subtracting the company's liabilities from its assets and dividing the result by the number of shares outstanding. The resulting figure is then divided by the number of shares outstanding, which gives the company's book value per share.