Where is share premium on balance sheet?
A share premium account appears in the shareholders' equity section of the balance sheet.
What is share premium on a balance sheet?
However, the market value of those 10 shares may be worth much more than the nominal value and, thus, greater than the company's total share capital. The share premium is the difference between the nominal value and the market value of those shares.
How is share premium treated in financials?
The premium amount is credited to a separate account called 'Securities Premium Account' and Is shown on the liabilities side of the company's balance sheet under the heading 'Reserve and Surplus'.
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