For operations on the repurchase of company shares or their cancellation, it is necessary to make entries on the debit of 82 and on the credit of 66, 67. Their implementation is allowed in the absence of other sources of the enterprise's own funds. And on the debit of account 82 in correspondence with the expense account, it is necessary to reflect the reimbursement of unforeseen expenses.
The category of unforeseen expenses includes those expenses that could not be predicted in advance. For example, it is impossible to foresee the breakdown of new equipment or a large amount of fines from the tax authorities. Such transactions must be confirmed by a decision of the shareholders' meeting.
When reducing
There are cases when the singapore email list company's Charter provides for a reserve capital, the amount of which significantly exceeds the volumes stipulated by law. The reduction of the FRS is recorded by entries on debit 82 and credit 84. In this case, the founders can change the previously adopted decision and reduce the reserve capital. The released amount of assets in this case becomes retained earnings.
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Analytical accounting of reserve capital
In the framework of analytical accounting, in contrast to accounting, it is possible to specify the options for using the FRS. The reserve capital of an enterprise can be formed from different sources and directed to different purposes.
Reserves, as part of cost price
Such assets are recorded in accounting on the passive account 96 "Reserves for upcoming expenses". They are systematically and in equal shares included in expenses, which are allocated to separate sub-accounts of the specified account:
payment of vacation pay to employees;
accrual of bonuses based on work results;
repair of fixed assets;
costs of repairs and maintenance under warranty.
Reserves included in other income
At the initial stage, they are recorded in different accounting accounts, as they have different purposes. During the formation of the reserve fund, its amount is deducted from the cost price, and the income is reflected in the balance sheet at the market price. If the specified amounts are not used by the beginning of the next year, they can be written off. They are recorded in account 59 "Reserves for depreciation of financial investments". This category of reserve funds includes:
Reserves formed by reducing the value of the company's tangible assets (if the market value on the day of receipt on the balance sheet is lower than the actual value, then a reserve is formed from the difference).
Depreciation of investments in shares. Here everything happens similarly with tangible assets (buying shares on the stock exchange at a price higher/lower than the nominal value leads to the appearance of a difference that forms a reserve).
Important! When displaying the balance on account 58 "Financial Investments", you should subtract the amounts that are included in the FRS for the depreciation of investments.