If an investor wishes to acquire shares at this time, they are valued at 1.9 u.a./share, 1 u.u. corresponding to the share`s participation in the capital and 0.9 u.m. with the participation in reserves. Offering less would hurt the former shareholders because, thanks to their collaboration, the company increased its net assets from $20,000 to $38,000 over two fiscal years. In this context, it is important to recall all that is found in Chapter 7 “Financial assets (I)” on the theoretical value of the share and the raison d`être of the subscription right. Save the update for these resources. It is important with this type of reserves that they are available reserves, that is, at some point they can be sold, for example, the distribution of an interim dividend of these reserves can be agreed. Assuming that a statutory reserve of S/.7.000.00 and an optional reserve of S/.3.000.00 are also created by resolution of the Annual General Meeting, the result is as follows: The reserves are included in subgroup 11 of the CGP, which has the following composition: This reserve is not available and must remain on the balance sheet of company “B” until the shares of the parent company are sold. Update the facilities of “INMA, SA” and prepare the corresponding accounting documents. The Administration provides for the revaluation of certain financial investments in the Finance Act for the year X7, including those corresponding to the company “LA SEDA DE SIGÜENZA, SA”.
The legally authorized valuation is the average share price of the year X6, which was 28 u.m. It follows from the above that there is an undertaking to deduct the reserve from profits: exceeding this limit does not have the status of a legal reserve. Losses in a financial year are offset by freely available profits or reserves. Failing this, they shall be offset by the legal reserve. In the latter case, the legal reserve must be replenished. The company can capitalize the legal reserve and is obliged to replenish it. The legal reserve shall be replaced by the use of profits from subsequent years in accordance with the procedures laid down in this Article. The managers undertake to allocate the legal reserve to the minimum set by law and to distribute the rest in the form of dividends. • Make the accounting records that the company will make if it issues 1,000 new shares at that time, which will be paid in full by the investors who subscribe to them. This reserve is created when the shares of the parent company are acquired or accepted as collateral.
Moreover, these reserves are not available for the duration of this situation. Thanks to this process of updating the balance sheets, it will be possible, on the one hand, to increase the value of the assets and, on the other hand, the revaluation reserves will appear on the liabilities side as compensation, resulting in an item that will be classified later with the following structure: The joint-stock company “NUAL, SA” has a share capital of 1,000,000 u.m., paid at 75 per cent. The legal reserve amounts to 160 000 u.a. At the end of the financial year, “NUAL, SA” made a profit of 200,000 u.m. The answer is given in the legal provision that allows the balance sheets to be updated. As a general rule, however, tangible assets such as buildings, land, installations and, exceptionally, fixed assets of a financial nature are determined. Below is a brief description of each booking mentioned in this block. This reservation has been included in section 5.1. “Reserves from retained earnings”, because although their birth is paid into “voluntary reserves”, these previously came from profits. At the beginning of year X5, the new net book value of the technical assets will be as follows: In addition to the legal problems, if the owners of “DOCE, SA” decide to distribute the profit in the form of dividends, the recording is made: reflect this operation in the accounts and indicate the impact of this fact on the guarantee of creditors. The amount to be reached by the legal reserve is 20 per cent of 1 000 000 u.a., or 200 000 u.m., so that there is currently a shortfall of 40 000 u.a. Therefore, “NUAL, SA” must contribute 10% of the annual profit to the legal reserve: legal reserves have the same origin as voluntary reserves, since they are constituted from the profits of the year, but their endowment is motivated by an agreement between the owners of the company, which is reflected in the company`s articles of association.
As we can see, this accounting account is debited from voluntary reserves for the loan and is part of equity. Thus, three major reserve blocks are distinguished: The disposition that the company can make via the “revaluation reserves” is determined in the legal provision authorizing it. Normally, its objective will be to increase the “legal reserve” or, after a certain time, to transfer it to “voluntary reserves”: according to the rule of law, if the creation of the legal reserve may be necessary, although it is valid that there is a partnership agreement that allows the legal reserve to be capitalised, but with costs to replace it, in accordance with Article 229 of the General Companies Act.