Own funds of the enterprise include reserve, authorized, Extra capital. These are the main elements by which the financing of the company's production activities is carried out. Let us consider in more detail what constitutes the reserve capital of the organization. 
General information
To compensate for losses in the implementation of financial and economic activities in companies provides a reserve fund. Capital is allocated to payables and contributions to investors in the event of a lack of profit for the reporting year. The presence of these funds acts as a kind of guarantee for the stable operation of the company.
Legal aspect
The obligation to create reserve capital is provided for in Federal Law No. 208. This requirement applies to joint-stock companies and joint corporations. LLCs, cooperatives and other commercial structures can create such a reserve of funds, if this is provided for in the constituent documentation. The reserve capital of the joint-stock company can be used to cover losses, redeem bonds, repurchase securities in the absence of other assets. For other purposes, these funds should not be sent.
Education order
The amount of stock is determined in the constituent documents of the enterprise. Authorized and reserve capital are two interrelated categories. Depending on the size of the first, the value of the second is determined. So, in accordance with the legislation in AO, reserve capital cannot be less than 15% of the authorized capital. For enterprises with foreign investment, this figure increases to 25%. The formation of reserve capital within the above restrictions is carried out by reducing taxable income. Moreover, the amount of deductions should not be more than half of this profit. According to the Federal Law governing the activities of AO, there is a requirement in accordance with which a reserve is formed. Its size must be at least 5% of the authorized capital. The upper limit in this case may be greater than the indicated indicator, since this restriction is not provided for in regulatory enactments. The reserve capital in the joint-stock company is formed at the expense of annual mandatory contributions until it reaches the value defined in the constituent documents.
Important point
Today, for many AOs, the reserve capital is less than 2-4% of the authorized capital. However, there are no violations of the requirements of the law or the provisions of the constituent documentation. The thing is that in recent years these companies have revised the size of their authorized capital and increased them due to additional ones. In some cases, the indicators increased by 10, and in others - more than a hundred times due to the increase in the value of revalued property. In this regard, the already increased size of the authorized capital should be taken as the basis for calculating the 15% indicator. The financial reserve for other enterprises is created in a different order. The main source from which funds are transferred to the reserve capital is the retained earnings remaining at the disposal of the enterprise.
Reporting: general rules
Accounting for additional and reserve capital is carried out in accordance with the stipulated rules for maintaining relevant documentation. The size of the stock is taken into account when making decisions and conducting business operations in AO. The use of these funds is the responsibility of the Supervisory Board / Board of Directors. This provision is provided for in Art. 65 of the specified Federal Law No. 208. The amount of the fund is taken into account when:
- Making decisions on declaring / paying dividends.
- Increase the authorized capital.
- Dividend payout.
- The acquisition of placed securities, certain preferred including.
Reserve capital: postings
Stock formation is shown as follows:
- Db sc “Losses and Gains” (99), Cd. “Uncovered loss (retained earnings)” (84) - reflects the amount of net income for the reporting period by the final records for December.
- Cf. 84 (debit), count. 82 (credit) "Reserve capital" - deductions to the reserve from net profit are made.
Directed amounts do not reduce taxable income and are not included in tax expenses. In some cases, it becomes necessary to change the reserve capital. The account will reflect the operations performed only if these adjustments are made to constituent documents and registered according to the established rules. In reporting, such operations are shown as follows: DB cf. 82, cd. 84 - the stock has been reduced to the value provided for in the constituent documentation.
Line 430 of the balance sheet shall reflect the amount of the reserve capital balance at the end of the reporting period. It can be shown both in general and in the following types:
- Created in accordance with the law.
- Educated according to the constituent documentation.
Features of the direction of funds
Accounting for reserve capital, aimed at covering the company's losses, redemption of bonds and repurchase of securities, is carried out and reflected in the balance sheet separately. According to methodological recommendations containing provisions on the procedure for compiling reporting indicators when considering the results of activities for a period and resolving issues related to sources of financing costs, stock funds can be used for these purposes. In accordance with paragraph 4, Art. 88 of the Federal Law No. 208, the annual reporting of the company must be previously approved by the board of directors by the supervisory body or by a person solely acting as an executive body. This must be done no later than 30 days before the day of the general annual meeting of participants. The decision on the allocation of funds constituting reserve capital for the repayment of losses is taken after the approval of the statements. Such use of finance qualifies as an event that occurred after the end of the period. 
Redemption of bonds
In accordance with Art. 816 Civil Code in the cases provided by law and other regulatory acts, it is allowed to conclude a loan agreement through the issuance and sale of securities. Long-term and short-term fundraising in this way is recorded on the account. 66 and cf. 67 separate from finance not secured by bonds. If the placement of securities is carried out at a cost in excess of their nominal price, then records shall be made in dB cf. 51 and others in correspondence with accounts 67, 66 (on a nominal indicator) and 98 (on a difference). The amount that is allocated to the account. 98, is evenly written off over the period of circulation of bonds on the account. 91, subch. 91-1, subch. 91-2. Debt on loans and borrowings is recognized taking into account interest payable at the end of the period. The latter act as operating expenses of the company. They are accounted for on the account. 91. The redemption of bonds represents payment of the nominal value and a fixed percentage of it or a property equivalent to the holder within the prescribed period. 
Repurchase of securities
According to Art. 101 GK AO can reduce its authorized capital by acquiring part of the shares to reduce their total number. This is allowed if this possibility is provided for in the constituent documentation. The acquisition procedure, as well as restrictions on the purchase of placed securities, are established in the Federal Law No. 208, Art. 72, 73. Changes relating to the reduction of the authorized capital are introduced into the constituent documentation under paragraph 1, Article12 of the said law on the basis of a decision adopted at a general meeting of participants. Own securities repurchased from the founders are reflected in DB accounts. 81. In this case, the amount of actual expenses relating to the repurchase in correspondence from Cd accounts for the accounting of financial assets is indicated. The cancellation of securities is reflected in cd. 81 and dec. 80 after the company has completed all the procedures provided for in such cases. The difference between the actual costs of repurchase and face value securities arising on the account. 81, carried forward 91 "other costs and income." The postings will be as follows:
- Db sc 81, cd 50 - repurchase of own shares.
- Db sc 80, cd 81 - reduction of the authorized capital through the repayment of repurchased securities.
- Db sc 91-2, cd 81 - reflection of the difference between the buyback price and the nominal price of the canceled shares.
Order for LLC
Such companies cannot make decisions on the distribution of profit between participants:
- If the value of net assets is less than the authorized and reserve funds or will decrease after such a decision.
- Before payment of the real value of the share (its part) of the founder.
- Before paying the authorized capital in full.
- If there are signs of insolvency (or if they appear after the decision is made).
Legislation does not oblige an LLC to create reserve capital. But they can form it, if it is provided for in the constituent documentation. Since this procedure for the LLC is not regulated by law, there are no restrictions either in size or in the procedure for creating a financial reserve. According to the law, the amount by which the authorized capital is increased at the expense of the company's property should not be higher than the difference between the value of the net asset and the size of the reserve and authorized capital.
