Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 12 - No. 49)
What is the difference between authorized and issued share capital?
Authorized share capital is the total amount of shares issued, issued is the amount sold.
Authorized share capital is the maximum amount of shares the company can issue, issued is the amount that has been sold.
Issued share capital is the total number of shares the company has, authorized is the amount of shares issued.
They are the same thing.
Explanation
Authorized capital is the maximum allowed, while issued capital is what's been sold.
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