what is the par value method of accounting for treasury stock 
the par value method is an alternative way to value the stock acquired in a buyback under this method shares are valued according to their par value at the time of repurchase this sum is debited from the treasury stock account to decrease total shareholders equity the common stock apic account is also debited by the amount originally paid in excess of par value by the shareholders the cash account is credited by the total cost of the share repurchase the net amount is recorded as either a debit or a credit depending on whether the company paid more or less than the shareholders did originally the bottom linetreasury stock refers to shares that companies buy back thereby decreasing the number of shares outstanding this stock can be purchased through a tender offer to investors or via a direct repurchase corporations may choose to hold treasury stock to raise capital later through resale to boost shareholder interests or to retire them completely if you re interested in finding a company s treasury stock look under the shareholders equity section of its balance sheet 