People with occupations not engage in professional accounting, sometimes alone can not interpret one or another economic term.It is clear when there is a concrete and visible example.
Therefore, to understand what the share premium, you might consider the following scenario.The company with an authorized capital in the amount of 100 thousand cu emits a hundred shares.In this case each share nominal value is equal to one thousand conventional units.The stock market, however, may offer a higher price for the shares.For example, ten thousand conventional units, if investors expect companies to increase their profits.Therefore, the value of each share is increased by ten conventional units.Thus, the share premium of one thousand conventional units.This is a simplified diagram.
emission referred to the issue of securities or cash.The thus-obtained income comes to the development of the chain goods - money - goods and as a result leads to the development of the enterprise or the economy in general.But the issue should be carried out within acceptable limits.Income Securities may receive only joint-stock companies engaged in the issue of shares.The company received a share premium, it sends it to the reserve fund or increases the total amount of the company's profits.
Economic Dictionary so interprets the concept of share premium - the difference which exists between the price at which the securities are sold, and their par value.Under the securities most often refers to the action.In accounting, share premium reserve are shown under capital and debit accounts of the cash and other assets that are transferred to the Company as payment for shares.
Almost equity income is excess profits, which appeared after the placement of the joint stock company of its shares, after deducting the costs of sale.He appears with the additional issue of shares or by increasing the nominal value;a difference that occurs when the sale of securities, selling price is above par.
In contrast to the revenue from the issue of securities, additional capital - is the revenue generated through the revaluation of property, increase its value, the values obtained for free now, and other sources.The article "Additional capital" reflects the movement of capital taking place not only from the growth in the value of property companies, and repayments of debt in foreign currency in payment of contributions to the charter capital.Immediately take into account the exchange rate difference.
Bank funds include, in addition to the additional capital, consisting of gains of bank assets, the income from the shares and the value of property received gratuitously.This also included the reserve bank fund and other funds, which the bank has the right to establish in accordance with its constituent documents.
The financial statements of additional capital made all the changes, such as an increase (originating from the revaluation of property) or a decrease.Part of the profit remaining undistributed at the disposal of the organization, taking as a reduction of additional paid in capital.
When summing up the annual summary reports revealed losses requiring coverage, then sent for the purpose of profit received by the Company, a reserve fund.And you can use the additional capital and the authorized capital, the amount of which can be adjusted to the net assets of the enterprise.
any organization engaged in commercial activities, except for income, there are obligatory expenditure to which the income tax he paid on the results of financial and economic activity.Tax Code defines as the object of taxation, any profit organizations in their monetary value, defined as revenue, net of the value of the costs.Under expenses are meant costs incurred in the production and sales, as well as non-operating expenses.
