What is the other capital reserve? What is Capital Reserve?

Other capital reserve refers to the capital reserve formed due to other ** or reasons, except for the capital reserve formed by the capital premium (equity premium), the provision for non-cash assets receiving donations, the provision for equity investment, the transfer of appropriations, the difference in the conversion of foreign currency capital, the difference in the price of related party transactions, etc., which are mainly the gains and losses directly included in the owner's equity. It is formed by changes in the valuation of specific assets, and when a specific asset is disposed of, other capital reserves should also be disposed of. Therefore, other capital reserves may not be used for direct capital (or share capital).

Specifics. 1 Available**Changes in fair value of financial assets. Gains on changes in the fair value of financial assets, other than impairment losses and exchange differences formed by foreign currency monetary financial assets, are debited

It can be used for the "Financial Assets - Fair Value Change" account, credit the "Capital Reserve - Other Capital Reserve" account, and make the opposite entry for the loss caused by the fair value change.

2 Equity-settled share-based payments. If an enterprise provides services to employees or other parties under an equity-settled share-based payment agreement, it shall be included in other capital reserves at the fair value of the equity instruments on the date of grant; On the exercise date, the amount determined shall be calculated based on the number of equity instruments actually exercised, and shall be converted into paid-in capital and capital premium.

3 The difference between the fair value and the carrying amount of held-to-maturity investments converted into available** financial assets. When an enterprise converts a held-to-maturity investment into a financial asset available for **, the difference between the fair value of the held-to-maturity investment and its carrying amount on the conversion date shall be included in other capital reserves; When converting a financial asset into a held-to-maturity investment, the balance of the financial asset that was originally included in other capital reserves should be amortized over the remaining term of the financial asset;

4. The share of changes in the capital reserve of the investee. In the case of long-term equity investment accounting using the equity method, if there is a change in the capital reserve of the investee, the enterprise shall calculate the share according to the proportion of shareholding and include it in other capital reserves;

5 The difference between the fair value and the carrying amount of real estate or inventory converted into investment real estate. When an enterprise converts real estate or inventory for its own use into investment real estate measured using the fair value model, the difference between the fair value and the original book value on the date of conversion shall be included in other capital reserves. When the investment real estate is disposed of, other capital reserves related to it should be re-sold.

6.The value of the conversion right of the convertible bond is credited to the "capital reserve - other capital reserve" at the time of bond issuance, and is transferred from the credit to the debit side of "capital reserve - other capital reserve" at the time of actual conversion.

There is a subject of capital reserve, there is no other capital reserve this subject, there are several types of capital reserve, such as the first type, the capital invested by investors, but the registered capital is sufficient, the capital reserve is recorded, and there is the formation of profits, etc., just read more books to understand.

Capital reserves refer 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 also 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.

Since capital reserve is an integral part of owners' equity, and it usually directly leads to an increase in the net assets of enterprises, capital reserve information is very important for the decision-making of investors, creditors and other users of accounting information. In order to avoid inflating net assets and misleading decision-making, it is necessary to clarify the main factors of capital reserve formation.

Capital reserve refers to the provident fund formed by the enterprise in the course of operation due to the acceptance of donations, capital (share capital) premium, and the revaluation and appreciation of statutory property, etc., and the capital invested by investors or others in the enterprise, the ownership belongs to the investor, and the amount invested exceeds the authorized capital.

The purpose is mainly to increase capital, that is, to increase paid-in capital (or share **** is share capital). This includes capital (or equity) premiums, cash donations, transfer-ins of appropriations, differences in foreign currency capital translation and other capital reserves.

The part of the capital (or share capital) premium invested by the enterprise investor in excess of its share of the registered capital is called the equity premium in the shares.

Accepting cash donations refers to the increase in capital reserve of an enterprise due to accepting cash donations.

1.Overview of capital reserves.

Capital reserve is the part of the capital contribution received by an enterprise from investors that exceeds its share of the registered capital (or share capital), as well as other capital reserves. Capital reserves include capital premiums (or equity premiums) and other capital reserves, among others.

Other capital reserves such as premium issuance**, excess capital contributions by investors refer to changes in owners' equity other than capital premiums (or equity premiums), net gains and losses, other comprehensive income and profit distributions.

2.Conversion of capital reserve into capital (by resolution of the general meeting of shareholders or similar institutions, when the capital reserve is used to increase capital, the capital reserve shall be written off, and the amount of the conversion shall be recorded in the sub-ledger of each owner under the account of "paid-in capital" (or "share capital") according to the structure or proportion of the paid-in capital (or share capital) before the conversion of capital.

Borrow: Capital reserve - capital premium (or equity premium).

Credit: Paid-up capital (or share capital).

Note: This business will not affect the change in the total owner's equity.

The provident fund formed by the enterprise in the course of operation due to the acceptance of donations, equity premium, and the revaluation and appreciation of statutory property.

Capital reserveOther capital reserve refers to the capital reserve formed in addition to the capital premium (equity premium), the provision for non-cash assets receiving donations, the provision for equity investment, the transfer of appropriations, the difference in the conversion of foreign currency capital, and the difference in the price of related party transactions.

1 Available**Changes in fair value of financial assets.

In addition to the impairment loss and the exchange difference formed by the foreign currency monetary financial assets, the gain formed by the fair value change of the financial assets available for ** shall be debited: the account of "financial assets available for ** - change in fair value" shall be credited, and the loss arising from the change in fair value shall be credited to the account of "capital reserve - other capital reserve", and the loss caused by the change in fair value shall be made as the opposite entry.

2 Equity-settled share-based payments.

If an enterprise provides services to its employees or other parties under a share-based payment agreement settled by Quan Wei Huiyi, it shall be included in other capital reserves at the fair value of the right to split benefit instrument on the date of grant; On the exercise date, the amount determined shall be calculated based on the number of equity instruments actually exercised, and shall be converted into paid-in capital and capital premium.

Difference Between Capital Reserve and Paid-up Capital:

First, from the perspective of ** and nature.

1. Paid-in capital (or share capital) refers to the capital actually invested by the investor in the enterprise and registered in accordance with the law in accordance with the articles of association or contract or agreement, which reflects the basic property rights relationship of the enterprise owner to the enterprise.

2. Capital reserve is the part of the investor's capital contribution that exceeds its share in the registered capital, as well as the gains and losses directly included in the owner's equity, which does not directly indicate the owner's basic property rights relationship to the enterprise.

Second, from the point of view of use.

The composition ratio of paid-in capital (or share capital) is the basis for determining the owner's participation in the financial operation decision-making of the enterprise, the basis for the enterprise to distribute profits or dividends, and the basis for determining the owner's claim to net assets when the enterprise is liquidated.

To be counted. The reason why share-based payments should be included in capital reserves, other capital reserves or equity premiums is that share-based payments are essentially additional issuances**, which will of course result in equity premiums. The inclusion of other capital reserves is only a transition before the exercise date, and the ** will be issued after authorization, and a premium will be generated, and the premium will be transferred from other capital reserves to equity premium.

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 reserves". 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.

Article 71 of the Company Law The shareholders of a limited liability company may transfer all or part of their equity to each other. The transfer of equity by a shareholder to a person other than the shareholder shall be subject to the consent of more than half of the other shareholders. Shareholders shall notify other shareholders in writing of their equity transfer matters to seek consent, and if other shareholders do not reply within 30 days from the date of receipt of the written notice of destruction, they shall be deemed to have agreed to the transfer.

If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; If you do not purchase it, you will be deemed to have agreed to the transfer. For the equity transferred with the consent of the shareholders, under the same conditions, other shareholders have the right of first refusal. If two or more shareholders claim to exercise the right of first refusal, they shall negotiate to determine their respective purchase ratios; If the negotiation fails, the right of first refusal shall be exercised in accordance with the proportion of their respective capital contributions at the time of transfer.

If the articles of association of the company have other provisions on the transfer of equity, such provisions shall prevail.