Par Value / Nominal Value
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Accounting for Companies Limited by Shares
MS: Nilai Tara · EN: Par Value / Nominal Value · ZH: 面值
Meaning
Par value is the face value or nominal value of a share fixed by the company when the share is first issued. It is the basis for calculating share capital and is not necessarily equal to the market price of the share. Par value is usually stated as RM1, 50 sen, or another value per share.
Example
For example, Restu Berhad sets the par value of its ordinary shares at RM1 per share. Even though investors are willing to buy the share at RM1.50 in the market, the share capital is still calculated based on the RM1 par value per share.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5