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What is Funds Parked for Buyback of Equity Shares?

 You know that balance sheet of company is mirror to see the real financial position of company. Just reading the balance sheet, we can tell whether company is strong or weak. Whether you should achieve the opportunity to invest or safe yourself from same company. But for this, you should understand the balance sheet. So, we explain its specific terms for better understand it and take better decisions for your own investing success. 

Today term is Funds Parked for Buyback of Equity Shares

It means keep bank fund separate from saving account with giving its clear mission that we will use same fund for buyback of equity shares from shareholders. Now understand with common example. You have the car. You have to visit your relative in the emergency ward in the hospital. Hospital has 4 parkings. Near parking is emergency parking. You will park your car in emergency parking because it will easy for you to get back your car when you will return after visiting your patient in emergency ward. 

Same in business. If you have the goal to invest your company money for buyback, you have to arrange fund but if same time, you have to make annual reports and you must show in the balance sheet that specific bank balance is parked for buyback of equity shares and when bought, it will zero. 

You can see same in the practical example of VRL Balance sheet where he showed the detail of bank balance 

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Accounting Education: What is Funds Parked for Buyback of Equity Shares?
What is Funds Parked for Buyback of Equity Shares?
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Accounting Education
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