Capital Reserve
A type of account on a municipality's or company's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense(s) that will be made in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance the project.
Investopedia Says:
Contributions to the capital reserve account can be made from government subsidies, donated funds, or can be set aside from the firm's or municipality's regular revenue-generating operations. Once recorded on the reporting entity's balance sheet, these funds are only to be spent on the capital expenditure projects for which they were initially intended, excluding any unforeseen circumstances.
Source: http://www.answers.com/capital+reserves?gwp=11&ver=2.3.0.609&method=3
share premium
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
Bank capital to assets is the ratio of bank capital and reserves to total assets. Capital and reserves include funds contributed by owners, retained earnings, general and special reserves, provisions, and valuation adjustments. Capital includes tier 1 capital (paid-up shares and common stock), which is a common feature in all countries' banking systems, and total regulatory capital, which includes several specified types of subordinated debt instruments that need not be repaid if the funds are required to maintain minimum capital levels (these comprise tier 2 and tier 3 capital). Total assets include all nonfinancial and financial assets.
"Bank capital" is the net worth of the bank, or its value to investors. It includes retained earnings, reserves, hybrid capital instruments, subordinated term debt.
Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
No, Capital reserves cannot be part of free reserves under S372A of Companies Act 1956.
share premium
it can't be distributed as dividend
capital and reserves
No reserves s part of the capital of the company. Reserves are funds help back by the company to do other things in the furture. It is not a current liability.
Total of Share capital, reserves and other funds and deposits is working capital of the bank but less revaluation reserve.
Secondary Reserves- Assets that are invested in safe, marketable, short-term securities.Primary Reserves- Cash required to operate a bank.here is a third one...Excess Reserves- Capital reserves held by a bank in excess of what is required.
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
1. capital account balance and forex reserves for the period 2001-2006 and list the major features.
Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.