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The Share premium account template calculates and evidences the share premium that arises when shares are issued for more than their nominal value. It links to the share classes set up in the Share capital reconciliation, so you only need to enter the details of each share issue (date, number of shares and issue price) and the premium is worked out for you.

Table of contents 

When should I use this template?

Attach this template to the code or codes on your trial balance that hold the share premium account balance. It is designed to sit alongside the Share capital reconciliation, which holds the underlying detail of the company's share classes.

What do I need to set up before I start?

Add the Share capital reconciliation template to the file first, and make sure the company's share classes (and their nominal values) are set up there.

If you haven't added it, the template shows a warning asking you to add it, and the Class of share dropdown and the nominal value lookup won't work until you do.

Why do I need a share premium account?

Under the Companies Act, where shares are issued for more than their nominal value, the excess must be recorded in a share premium account: a separate, non-distributable reserve. This template exists to build up and evidence that balance.

How do I complete the template?

For each share issue during the period, add a row to the table and complete the following fields:

  • Date - the date of the share issue.
  • Class of share - a dropdown populated from the share classes set up in the Share capital reconciliation.
  • Number of shares - defaults to the number of shares of that class recorded in the Share capital reconciliation, but you can overwrite it if only part of the issue relates to this transaction.
  • Issue price per share - the price actually paid or credited per share.
  • Nominal value per share - pulled through automatically for the selected class from the Share capital reconciliation. You cannot edit it here.
  • Premium per share - calculated automatically as the issue price less the nominal value.
  • Total share premium - calculated automatically as the premium per share multiplied by the number of shares.

The rows are totalled into a subtotal. Below that, an Other items row lets you record any adjustment to the share premium account that doesn't come from a straightforward share issue, for example a correction or a non-standard entry. Give it a description and a value, and it is added into the grand total.

Silverfin compares the grand total against the account's trial balance value. If the two don't match, an unreconciled indicator appears, together with a breakdown of the trial balance value, the template value and the difference.

What flows through to the rest of the accounts?

This template supports and evidences the trial balance value of the account or accounts it is attached to. It doesn't export figures to other templates. Once reconciled, the balance appears in the accounts wherever that code is mapped, typically as part of shareholders' funds on the balance sheet.

What rolls forward next year?

Share issues you have entered stay on the template from year to year. They aren't cleared down at the start of a new period, so the running total continues to build as more shares are issued in later years. You only need to add rows for issues that happened during the current period.

Where does the data come from?

  • The list of available share classes, the default number of shares and the nominal value per share all come from the Share capital reconciliation.
  • The trial balance value the template reconciles against is the mapped account's balance for the period.

Frequently asked questions

Why can't I edit the nominal value per share?

It is pulled through from the Share capital reconciliation so that it always matches the share register. If it needs to change, update it on the Share capital reconciliation instead.

Why is the Class of share dropdown empty or showing a warning?

The Share capital reconciliation hasn't been added to the file yet, or no share classes have been entered on it. Add the template and set up the classes, then come back to this template.

The totals don't reconcile to the trial balance - what should I check?

Check that every share issue in the period has been entered with the correct number of shares and issue price, and that you have captured any non-standard premium adjustments in the Other items row.