Sources and items of equity

Abstract

The subject of the article is the presentation of information about the sources and items of equity capital for external users. The methodological basis of the study is general scientific methods: analysis, synthesis, deduction, scientific abstraction and generalization of the results obtained. The article substantiates the deterioration in the perception of reporting information about the organization by external users by the presence of terminological confusion regarding the name of the element «equity capital». The author concluded that it is necessary to choose a single term to denote the share of owners in the assets of the organization. The article defines the value of equity capital for external users. There are two main classifications of equity capital: by sources and items. It is concluded that it is necessary to provide information about the sources of equity capital in the statement of changes in capital. It is concluded that there are no definitions of equity items in regulatory documents on accounting. The reasons for the lack of definitions of equity capital items are highlighted. The relationship between the lack of definitions of equity items and the need to present them in the balance sheet is determined. The necessity of harmonizing the definitions of equity capital items with the documents regulating the functioning of legal entities in our country is substantiated.

Keywords

• own capital
• authorized capital
• reserve capital
• additional capital