Accounting for Treasury Stock



Accounting for Treasury Stock

Introduction

There are two methods used for the purchase and sell of the treasury stock. These two methods are cost method and the par value method. The cost method is mostly used by the number of organizations who want to repurchase the treasury stock while the par value method is used when the organization made the intention to retire the stock which is reacquired. The par value method is used for lowering the number of shares available to the organization. The cost method of the treasury stock is used for temporary reduction while the par ...