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Issued shares belongs in a dated, class-level equity analysis. Issued shares are shares that crossed the legal issuance boundary. They remain issued after a treasury purchase unless the entity formally retires them. A dated share register should reconcile each class from opening issued shares through issues, conversions, stock distributions, and retirements.
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An entity begins with 900,000 issued shares, issues 100,000, and buys 40,000 into treasury. It ends with 1,000,000 issued shares because the purchase reduced outstanding shares, not issued shares.
Review issued shares against share capital authorization. Reconcile issued shares to outstanding shares, the dated issued shares evidence, and its final presentation.
The issued shares record ties share capital authorization to its source date, measured amount, and outstanding shares effect.
Keep the boundary clear
Authorized shares are capacity. Outstanding shares are issued shares held outside the issuer. Keeping these quantities separate prevents errors in voting rights and EPS.
Authority
Read ASC 505-10-50-2 for changes in equity and share counts.
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- Share capital authorization — Apply
To apply this concept: Required. This prior idea supplies the quantities or classification needed for the current analysis.
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- Outstanding shares — Apply
Required level here: apply. Required. This prior idea supplies the quantities or classification needed for the current analysis.