Cual Es El Asiento Contable De La Reserva Legal

In this block, there is the one represented by account 110, „Share Issue Premium”. TrLSA plans to issue shares at a premium in its section 47, which states: Assuming a liquid profit of $5,000,000, the use of the legal reserve in this case ($5,000,000 – income tax) would be x 10%. For example, if the share capital of the corporation is $100,000,000 and the legal reserve has accumulated $70,000,000, it means that the corporation has a legal reserve that is $20,000,000 greater than that required by law, so that it can take that $20,000,000 and give it the use that the meeting provides. In this case, the net assets of „DOCE, SA” are 15,000 U.M., represented by 10,000 U.M. in the share capital and 5,000 U.M. in the form of voluntary reserves. Its materialization in assets is 12,000 U.M. in banks and 3,000 U.M. in shares. Continuation of the previous example when „DOCE, SA” decides to pay a dividend of $5,000.

Loaded with „voluntary reserves”, the entry reads as follows: If the company does not generate profits in a year or year, has no obligation to allocate resources to the legal reserve, 10% is required by law, on liquid profits, and these can not exist if there are losses. Reflect this process in the accounts and indicate the impact of this fact on the creditor`s guarantee. The legal reserve is a type of fund or savings that companies or companies must form due to a legal mandate to protect inheritance. Articles 74 et seq. of the TRLSA regulate the treatment of own shares or own shares of companies. Although this chapter does not address the content of these articles, it must be clear that the acquisition of own shares is a lawful transaction and, if carried out, there will be an effective reduction in the number of shares, which the law aims to mitigate by providing a reserve of an unavailable nature for the amount of own shares acquired and which will remain on the balance sheet. as long as there is no alienation of the same. Update the facilities of „INMA, SA” and prepare the appropriate accounting documents.

The provision that may be made for this type of reservation must be included in the statutes. We start with the legal reserve in the corporation because it is the one that is best regulated, and the legal reserve in other types of corporations usually refers to the rules of the corporation. If an investor wanted to buy shares that day, they would be valued at 1.9 U.m./share, 1 u.m. depending on the equity participation and 0.9 U.M. on the reserve share. If they were offered cheaper, the former shareholders would be harmed, because thanks to their cooperation, the company managed to increase its net assets from 20,000 to 38,000 u.m. over two years. In this sense, it is important to recall everything that can be seen in Chapter 7, „Financial Assets (I)”, on the theoretical value of the share and the purpose of the subscription rights. This reserve is made when shares of the parent company are acquired or accepted as security. In addition, these reservations are not available for the duration of this situation.

If this is the case, these companies should deduct at least ten percent (10%) of each year`s distributable profit, less income tax, from the legal reserve until it reaches an amount equal to one-fifth of the capital (20%). Thanks to this process of updating the balance sheets, on the one hand, it will be possible to increase the value of the assets and, on the other hand, in the liabilities, the reserves for revaluation will appear as equivalent, which will give a seat that will then be qualified with the following structure: the law does not distinguish between the type or class of the company, In any case, by the simple fact of being a foreigner, it must constitute the legal reserve within the meaning of Article 452 of the Commercial Code. The legal reserve has a specific purpose that is established by law, but this limitation applies exclusively to the value or amount required by law, and not to its surplus, so that the company can give the use it wishes for this surplus. As for the recognition of the statutory reserve, it is part of the assets, more precisely in the account, which 330505 according to the Colombian chart of accounts alone. The amount that the legal reserve must reach is 20 per 100 per 1,000,000 US, i.e. 200,000 u.m., so currently 40,000 U.m. are missing. Therefore, „NUAL, SA” must provide 10 per 100 of the exercise advantage for the legal reserve: the endowment to these reserves is free, as the name suggests. Once all legal aspects have been covered, it may be decided not to distribute the rest of the service and to provide these reservations.

What the company achieves is self-financing, because the resources (profits) generated during the year are not distributed and their exit outside the company is avoided. The resources thus generated can be used to acquire more fixed assets, more shares, in short, to extend the economic power of the company. The legal reserve will no longer be mandatory when the 100% is completed, as in the legal reserve sometimes, in order to keep intact the guarantee of the creditors, the capital of the profits or freely available reserves will be reduced. This type of capital reduction creates an unavailable reserve, the „amortized capital reserve”, which ensures that the company`s unavailable net assets remain unchanged. In this case, creditors cannot refuse to carry out such a transaction, since the guarantee offered to them by the company is identical to that which it had before the reduction. What is important about this type of reserves is that they are available reserves, which means that they can be sold at some point, for example, the distribution of an interim dividend of these reserves can be agreed. What assets can be revalued? The answer is given in the legal provision that allows the balance sheets to be updated. As a general rule, however, tangible assets such as buildings, land, facilities and, exceptionally, fixed assets of a financial nature are determined. Notwithstanding the foregoing, this does not mean that you can make reservations for additional amounts, which are in any case considered optional, contractual, statutory or otherwise. The joint-stock company „NUAL, SA” has a share capital of 1,000,000 u.m., paid in 75 per 100.

The legal reserve amounts to 160,000 u.m. At the end of the financial year, „NUAL, SA” made a profit of 200,000 rpm. Statutory reserves have the same origin as voluntary reserves, since they are constituted from the profits of the year, but their endowment is motivated by an agreement of the owners of the company, which is reflected in the statutes of the company. The legal reserve is mandatory, provided that the company has profits on which it can determine the reservation. Keep in mind that the reserve is taken from the profits of the year, so the accounting record or entry would look like this: Record the update of these assets. The legal reserve is calculated on the basis of the liquid profits of the year, understood as net profits after taxes, and of course after deduction or reduction of all costs and expenses of the normal year of the company „In any case, an amount equal to 10 per 100 of the annual profit will be allocated to the legal reserve until it reaches, at least 20 per 100 of the share capital”. • Prepare the accounting records that the company will prepare if it issues 1,000 new shares at that time, which will be fully paid for by the investors who subscribe to them. The directors undertake to establish the legal reserve for the minimum set by law and to distribute the rest in the form of dividends. Indeed, it is not possible to charge more than the law has required, and the law only requires to constitute a reserve until 50% of the share capital is reached. Companies that are not legally required to constitute a legal reserve may be included in the articles of association.

At the beginning of the year X5, the new net book value of the technical equipment will be: the legal reserve in the joint-stock company is provided for in Article 452 of the Commercial Code: the legal reserve can only be used for something other than the provisions of the law, and this only allows its use to cover losses, as indicated in Article 456 of the Commercial Code: In this sense, in the case presented by the company abcsrl, it is necessary in principle to provide for the corresponding reservation, which would be calculated as follows: these are those determined by a mandatory provision. Their allocation is made from „profits and losses” and their application depends on the specific rule that created them. If this reserve reaches the fifty percent mentioned above, the company is not obligated to continue to transfer ten percent of the liquid profits to this account.