A non-cash issue is an event where a company issues (emits) new shares by bringing in new, external capital in the form of taking over assets from existing and/or new shareholders. Assets are considered to be property other than cash, such as shares, real estate, machinery, patents, or other rights. Payment for the newly subscribed shares can also be made by offsetting, wholly or partially, a claim that the subscriber holds against the company. The value of the assets or the creditor's claim must be reviewed and certified by one or more auditors — a so-called auditor's statement.
The new capital added to the company increases the company's share capital by the number of newly issued shares multiplied by the shares' quota value. If the price per share exceeds the quota value of the existing shares, the surplus capital is recorded as unrestricted equity.
One reason for carrying out a non-cash issue could be to offset a claim someone has against the company or in connection with an acquisition where one company acquires another and payment is made with shares in the company.