Accounting of reserve capital in commercial organizations

Abstract

A capital reserve or a fund is established as a guarantee for the capital invested into the production, and is part of the retained income (equity capital) reserved in order to cover any potential losses, unexpected costs, and liabilities. This is why it is important to properly arrange for the accounting of this capital development and distribution

Keywords

• резервный капитал
• собственный капитал
• нераспределенная прибыль
• capital reserves
• equity capital
• retained income