04-12-2007, 07:39 PM
Dear Kamran Sahib,
I agree with your opinion that such shares would be classified as issued against cash. But a word of caution here for other users of the forum, one should also keep in mind the fact that the shares may be issued in excess of the amount of such expenses. In that case, shares equivalent to the amount of expense would be shown as PAID IN CASH but the excess shares (may be for the services rendered by the Sponsors) would be classified as SHARES ISSUED FOR CONSIDERATION OTHER THAN CASH.
I agree with your opinion that such shares would be classified as issued against cash. But a word of caution here for other users of the forum, one should also keep in mind the fact that the shares may be issued in excess of the amount of such expenses. In that case, shares equivalent to the amount of expense would be shown as PAID IN CASH but the excess shares (may be for the services rendered by the Sponsors) would be classified as SHARES ISSUED FOR CONSIDERATION OTHER THAN CASH.
