Explain the accounting treatment of the shares issue if the issued shares are undersubscribed due to the current impact of COVID-19 pandemic affecting many economies across the world.

Words: 60
Pages: 1
Subject: Accounting

Explain the accounting treatment of the shares issue if the issued shares are undersubscribed due to the current impact of COVID-19 pandemic affecting many economies across the world.

How will this affect the company’s shareholders? How will this be different if you advice on the issue of a convertible debenture on the company’s capital structure and the shareholders?