What are the items included in the capital reserve?

Capital reserve refers to the share of investors received by an enterprise in excess of its share of the registered capital of the enterprise, as well as the gains and losses directly included in the owner's equity. Capital reserve includes capital premiums (equity premiums) and gains and losses that are directly credited to owners' equity.

1. Capital premium (equity premium).

A capital premium is an investment that a business receives from investors in excess of its share of the business's registered capital (or share capital). Capital premiums (or equity premiums) are formed due to premium issuances**, over-paid capital by investors, etc.

2. Gains and losses directly included in owners' equityGains and losses directly included in owners' equity refer to gains or losses that should not be included in the current profit or loss, will lead to changes in owners' equity, and are not related to the owner's investment of capital or the distribution of profits to the owner, mainly including the following items:

1) For long-term equity investments accounted for by the equity method, other changes in the owner's equity of the investee other than net profit or loss shall be credited or debited to the "capital reserve" account according to the proportion of shareholding.

2) On the balance sheet date, the difference between the fair value of the available financial assets and the book balance shall be included in the capital reserve; When the financial assets are available for transfer, the capital reserve related to them shall be resold and included in the profit or loss for the current period.

3) When self-used real estate or inventory is converted into investment real estate measured using the fair value model, the investment real estate shall be valued at the fair value on the date of conversion, and if the fair value on the date of conversion is less than the original book value, the difference shall be included in the profit or loss for the current period; If the fair value on the date of conversion is greater than the original book value, the difference shall be included in the "capital reserve". When the investment real estate is disposed of, the capital reserve related to it is resold and included in the profit or loss for the current period.

4) If the equity-settled share-based payment is exchanged for services provided by employees or other parties, the "management expenses" and other accounts shall be debited and the "capital reserve - other capital reserve" shall be credited according to the fair value of the equity instrument on the date of grant. On the exercise date, the enterprise debits "capital reserve - other capital reserve", credits "share capital" ("paid-in capital") or "treasury shares" according to the number of equity instruments actually exercised, and debits or credits "capital reserve - capital premium" according to the difference.

Capital reserve is an owner's equity account.

This account accounts for the gains and losses received by the enterprise from investors in excess of its share of the registered capital or share capital, as well as the gains and losses directly included in the owner's equity. Capital reserve is an owner's equity account. Capital reserve refers to the asset value invested by investors, but cannot be included in the paid-in capital, or the funds obtained from other ** and enjoyed by investors.

The contents of capital reserve mainly include capital premium or equity premium, donated assets, equity investment provisions, appropriation transfers, foreign currency capital translation differences and other capital reserves. The purpose of capital reserve is to transfer capital.

Capital Reserve Account:

1. Account nature: owner's equity account.

2. Account purpose: Accounting for the part of the capital contribution received by the enterprise from investors that exceeds its share in the registered capital or share capital (i.e., capital or equity premium), and the gains and losses directly included in the owner's equity are also accounted for through this account.

3. Account structure: credit increases, registration of the part of the investor's capital contribution actually received in excess of its share in the registered capital or share capital, etc.; The debit is debited to indicate the decrease in capital reserve; The closing balance is on the credit side, indicating the actual amount of capital reserve.

4. Detailed account: "Capital premium (equity premium)" and "other capital reserve" are set up separately for detailed accounting.

The new accounting standard only has "capital premium" and "capital reserve" under "capital reserve"."Other capital reserves", but there are still "equity investment provisions", but there are still "equity investment provisions", but in"other capital reserves" are downgraded.

Capital reserve specifically includes capital (or equity) premium, provision for non-cash assets receiving donations, provision for equity investment, transfer of appropriations, difference in related party transactions, difference in translation of foreign currency capital and other capital reserves.

Capital reserve accounts for the capital reserve obtained by the enterprise. The main contents are as follows:

1. Capital (or equity premium).

2. Prepare for accepting donations of non-cash assets;

3. Accept cash donations;

4. Preparation for equity investment;

5. Transfer of appropriations;

6. Difference in the translation of foreign currency capital;

7. Other capital reserves.

The accounting of capital reserve includes seven items: capital premium, provision for non-cash assets for donation, provision for equity investment, transfer of appropriations, difference in translation of foreign currency capital, difference in related party transactions and other capital reserves, of which other capital reserves include cash donations, debt restructuring, transfer of capital reserve reserves, and payables that cannot be paid.

Capital reserve refers to the provident fund formed by an enterprise in the course of operation due to the acceptance of donations, equity premiums, and the revaluation and appreciation of statutory property. Capital reserve is a credit that is not related to the earnings of a business but is related to capital. Capital reserve refers to the capital invested by investors or others in the enterprise, the ownership of which belongs to the investor, and the amount invested exceeds the authorized capital.

The new standard stipulates that the capital reserve formed by an enterprise is accounted for in the "capital reserve" account. The account is accounted for according to two detailed accounts, "capital premium" and "other capital reserve". The increase in the capital reserve of the enterprise registered by its lender.

The decrease in the registered capital reserve on the debit side, and the closing balance on the credit side, reflect the actual amount of capital reserve of the enterprise.

Legal analysis: Capital reserve refers to the reserve fund directly formed by capital reasons, such as the premium amount of the issuance of **, the appreciation of the company's property, etc. The capital reserve can be converted into registered capital, but it cannot be used to cover losses.

Shares of the Company held by the Company shall not be subject to distribution of profits. 1. Capital reserve includes capital (or equity) premium, donated assets, transfer of appropriations, and differences in the translation of foreign currency capital. Capital reserve items mainly include:

1) Capital (or equity) premium refers to the part of the capital invested by the enterprise investor that exceeds its share in the registered capital;

2) The provision for accepting non-cash asset donations refers to the increase in capital reserve of enterprises due to the acceptance of non-cash asset donations;

3) Accepting cash donations refers to the increase in capital reserve of an enterprise due to accepting cash donations;

4) Equity investment provision refers to the capital reserve increased by the enterprise due to the investee's acceptance of donations and other reasons when the long-term equity investment of the investee is accounted for by the equity method, and the capital reserve increased by the enterprise calculated according to its shareholding ratio;

5) The transfer of appropriation refers to the part of the appropriation that the enterprise receives from the state for the purpose of technological transformation and technological research after the completion of the transfer to the capital reserve in accordance with the regulations. Enterprises should be recorded according to the amount transferred;

6) The difference in the translation of foreign currency capital refers to the difference in the translation of capital due to the difference in the exchange rate adopted by the enterprise in accepting foreign currency investment;

7) Other capital reserves refer to the capital reserves formed in addition to the above-mentioned capital reserves, as well as the amount transferred from the various reserve items of capital reserves. Debts forgiven by creditors are also accounted for under this project.

Legal basis: Article 166 of the Company Law of the People's Republic of China When a company distributes the after-tax profits of the current year, it shall withdraw 10% of the profits and include them in the company's statutory reserve fund. If the cumulative amount of the company's statutory reserve fund is more than 50% of the company's registered capital, it can no longer be withdrawn.

If the company's statutory reserve fund is insufficient to make up for the losses of previous years, it shall first use the profits of the current year to make up for the losses before withdrawing the statutory reserve funds in accordance with the provisions of the preceding paragraph. After the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by resolution of the shareholders' meeting or the general meeting of shareholders. The after-tax profits remaining after the company makes up for the losses and withdraws the provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; Shares are distributed in proportion to the shares held by shareholders, except for those that are not distributed in proportion to the shares held by the articles of association.

If the shareholders' meeting, the general meeting of shareholders or the board of directors violates the provisions of the preceding paragraph by distributing profits to shareholders before the company makes up for losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company. Shares of the Company held by the Company shall not be subject to distribution of profits.

The popular explanation of capital reserve is as follows:

Simply understood, it actually refers to the provident fund directly formed by capital reasons, such as the provident fund formed by the enterprise in the course of operation due to the issuance premium, the transfer of special appropriations, the acceptance of donations, the capital (share capital) premium and the revaluation and appreciation of statutory property.

The use of capital reserves.

1. From the perspective of capital reserve, it is not converted from the profits realized by the enterprise, and essentially belongs to the category of invested capital. The main purpose of capital reserve is to increase capital, and there are eight detailed accounts, of which 3 cannot be directly converted into capital.

2. When the company is founded, the capital contribution subscribed by the investor is often consistent with the registered capital and will not generate capital reserve. When a new investor enters the community, the amount of capital invested equal to the proportion of investment is included in the paid-in capital, and the excess part is included in the capital reserve - capital premium. This is different from the capital reserve in long-term equity investment, which is the equity investment provision.

3. The capital invested by the enterprise in the form of non-cash assets from the investor shall be included in the capital reserve according to the value of the assets confirmed by the parties to the investment as the paid-in capital after going through the formalities for the transfer of property rights, and the part of the recognized asset value exceeding its share of the registered capital shall be included in the capital reserve.

4. When the joint-stock company issues shares at a premium, it is necessary to confirm the capital reserve - the premium of the share capital. The balance of the issuance expenses such as handling fees or commissions paid by the issuance ** after deducting the interest income generated by the bureau during the freezing period of the issuance period, and the part of the part where there is no premium or the premium amount is insufficient to cover the issuance expenses shall be directly included in the financial expenses and shall not be regarded as long-term amortization expenses.