What is the difference between real capital and owner s equity?

The actual capital is not the same as the owner's equity in the general accounting statement. It is mainly manifested in the following aspects:

1) The nature is different. Effective capital is the capital at which an insurance company is able to meet its obligations to policyholders. Owner's equity is the economic interest that the owner enjoys in the business.

2) The purpose is different. The purpose of assessing actual capital is to measure the solvency of an insurance company. The purpose of confirming the owner's equity is to measure the economic interests enjoyed by the owner in the enterprise, and to evaluate the financial status of the enterprise and the operating performance of the manager.

3) The composition is different (see Part 3 of this guide for detailed differences - on the composition of actual capital). Real capital includes invested capital, residual comprehensive income and capital liabilities included in real capital, and this composition reflects the quality and reasons for the formation of real capital. Owners' equity includes paid-up capital (or share capital), capital reserve, surplus reserve and undistributed profits, and this composition reflects the equity enjoyed by each owner.

4) Confirmation and measurement standards are different. Actual capital is the difference between recognized assets and recognized liabilities, and owner's equity is the difference between assets and liabilities. Since the purpose of the solvency report is different from that of the general accounting statement, the recognition and measurement standards for authorized assets and assets, authorized liabilities and liabilities are different, and the recognition and measurement standards for owners' equity and actual capital are also different.

For example, subordinated debt raised by an insurance company is not recognized as owner's equity, but can be recognized as actual capital according to a certain percentage. For example, there is no need to distinguish between surplus reserve and undistributed profit in solvency assessment, because they are both part of the insurance company's internal capital accumulation and there is no difference in the ability to meet the obligation to pay to policyholders.

Not a concept.

1. Because the conversion of owners' equity into capital is to increase the paid-in capital and reduce the surplus reserve or capital reserve at the same time. It is the increase or decrease of the internal account of the owner's equity, and the total owner's equity remains unchanged.

2. The invested capital is an increase in paid-in capital and an increase in the total owner's equity.

Not exactly the same :

Capital refers to the capital invested by the owner in the enterprise, including the part that constitutes the registered capital of the enterprise (included in the "paid-in capital" in accounting) and the part of the invested capital that exceeds the registered capital (the capital premium, which is included in the "capital reserve" in accounting).

Owner's equity refers to the residual equity enjoyed by the owner after deducting the total liabilities from the total assets of the enterprise. In addition to the capital mentioned above, it also includes gains (or losses) directly credited to the owner's equity, retained earnings, etc. The accounting includes paid-in capital, capital reserve (including capital premium and other capital reserve), surplus reserve and undistributed profits.

No. Owner's equity refers to the right of the owner of the enterprise to claim the net assets of the enterprise; That is, all assets, minus liabilities, are the equity of the owners of the investment.

Equity capital, also known as equity capital, refers to the capital invested by investors, and capital refers to the total registered capital registered by the enterprise in the administrative department for industry and commerce, and the total capital includes all the capital registered by various investment entities of the enterprise.

Sovereign capital has the following characteristics:

1) The ownership of sovereign capital belongs to all the co-usherents, so the owner can participate in the operation and management decisions of the enterprise, obtain benefits, and bear limited liability for the operation of the enterprise.

2) Sovereign capital belongs to the "permanent capital" occupied by the enterprise for a long time, forming the property right of a legal person, and during the operation period of the enterprise, the investor shall not withdraw the capital in any way except for the transfer according to law, and the enterprise has the right to dispose of the property according to law.