Common Equity Tier 1 Capital — New Share Issuance
Issuing new ordinary shares to existing shareholders to strengthen CET1 capital.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank (Capital Received) | Asset (+) | 20,000,000.00 | - |
| Share Capital (Par Value) | Equity (+) | - | 5,000,000.00 |
| Share Premium (Above Par) | Equity (+) | - | 15,000,000.00 |
💡 Accountant's Note
New share issuances increase CET1 capital, improving the bank's capital adequacy ratio (CAR) under Basel III. Share capital is recorded at par; premium above par goes to the share premium reserve. Both are CET1 components under CBJ Basel III framework.
Practitioner & Systems Framework
💻 ERP Architecture
Share capital transactions are processed in SAP FI via the equity module or Oracle FLEXCUBE's GL. The Companies Control Department (CCD) in Jordan must be notified. The capital increase requires shareholder approval (EGM) and CBJ prior approval before the issuance.
⚠️ Audit Flags
Auditors verify CBJ prior approval was obtained before the share issuance. Companies Control Department registration of the capital increase must be completed within the required timeframe. The use of proceeds (capital injection vs. covering losses) is disclosed in the notes.
📄 Required Documentation
CBJ prior approval letter, EGM resolution, Companies Control Department filing, share subscription agreements, and certificate of increased capital from the CCD.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.