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Share capital includes. Share capital. Issued and outstanding capital

Joint stock or corporate form management involves the pooling of capital. A joint stock company (JSC) will provide an opportunity to concentrate capital by attracting investors through the purchase of shares. Share capital used for large-scale projects (construction of railways, canals, sea ​​vessels etc.), where individual capital is not sufficient even if it is possible to use bank loans. A joint stock company (corporation) attracts cash various investors, which is issued in the form of securities. Initial capital A joint-stock company is formed from the capital of the founders and through the sale of securities (shares and bonds) to the public.

The supreme management body of the joint-stock company is the meeting of shareholders. It is not convened less than once a year. A JSC participant has a number of votes proportional to the number of ordinary shares he owns. Voting principle: one share - one vote. A controlling stake provides a majority of votes to its owners at a meeting of shareholders and gives control over the activities of the company. The risk of shareholders is limited by the limits of the share they contributed to the joint-stock company. By acquiring controlling stakes in subsidiaries, parent companies significantly expand the sphere of dominance over other people's capital. When carrying out risky operations in subsidiaries The risk of parent companies is limited only by the block of shares they own. Joint stock companies are a leading part of the economy of developed countries.

Influence on the company's activities begins with the acquisition of a 25% share of the share capital, which is called a blocking minority. Formally property large enterprises belongs to all shareholders owning shares of this enterprise. In fact, the role of small shareholders is insignificant. All decisions are made only by large owners and managers. Small owners are deprived of the opportunity to influence the processes taking place in a joint-stock company and can only count on additional income in the form of dividends.

A large number of owners of a joint-stock company leads to the need to hire a company manager. Therefore, a distinction arises between the right of ownership and the right to manage property, delegated by shareholders to the management of the company. Between shareholders' meetings, management of the company's day-to-day affairs is entrusted to the board of directors, elected at general meetings. The board of directors determines the structure of the corporation and appoints the management staff. Thus, ownership and disposal of property in a joint stock company are divided between the management (managers) of the company and its owners (shareholders).

The authorized capital of a joint-stock company is represented by a certain number of securities in the form of bonds and shares. Bond - debt security, the owner of which lent to its issuer the amount of money specified in the face value of the bond. A bond entitles its owner to receive a fixed interest income from the issuer during a specified period and return its face value at the end of that period (called bond redemption). The owner of a bond is a creditor of the issuer of that fixed income security.

Promotion - a perpetual equity security indicating that its owner has contributed a certain amount of money to the capital of the joint-stock company and giving the right to receive income called a dividend. The owner of the share is a co-owner of the enterprise. His share in the total capital is determined by the number of shares he has in monetary terms.

Dividend - Part net profit JSC.

Shares are divided into ordinary (ordinary) and preferred (preferential). Preferred shares do not provide voting rights at shareholders' meetings, but guarantee fixed dividend payments. Ordinary shares do not guarantee the amount and obligation to pay dividends, but give their owners the right to vote at shareholder meetings.

According to the nature of the order, shares are divided into registered and bearer. The owner of registered shares is registered in the general register of shareholders. The movement of such shares from one person to another must be recorded in the register and is not permitted by the charter of the joint-stock company in all cases. Bearer shares are impersonal, and their owners are not known to society.

Funds received by the company from shareholders in payment for shares become the property of the company. The shareholder has no right to demand these funds back from the company. To convert shares into cash, they must be sold on the securities market at a market rate, which may be higher or lower than the original (par) price of the share. By selling shares, the owner sells his share of ownership and the right to an annual dividend. The stock price is determined by the amount of the dividend and the bank interest rate:

Dividend amount / Bank interest rate = Share price

The determination of the market rate is called the quotation given by the stock exchange. People are attracted to investing in the purchase of JSC shares by the hope of receiving a high income. However, fluctuations in the market price of shares make them a risky form of investment.

After paying income tax, net profit remains, which is distributed by decision of the board of directors and approved by general meeting shareholders in the following order:

  • - to expand production;
  • - for the formation reserve fund;
  • - for the payment of bonuses to the management of the joint-stock company;
  • - the remaining part is intended for payment on securities in the following order:
    • a) interest on bonds;
    • b) fixed dividends on preferred shares;
    • c) dividends on ordinary shares, the amount of which depends on the total amount of profit and on the distributed share.

Founder's profit- this is the difference between the amount received by the founders from the sale of shares when they were issued and the actual capital invested in the joint-stock company by the founders. This specific type of profit exists only on the basis of share capital, and the profit is appropriated before the start of the functioning of the company. The essence of this is that shareholders' funds are redistributed in favor of the founders. Founder's profit is generated by selling shares above their nominal price and increasing the volume of sales of shares in excess of the established share capital.

The totality of JSC securities represents a phenomenon called fictitious capital. The amount of fictitious capital usually exceeds the amount of real capital (buildings, machinery, equipment, raw materials, finished products etc.) several times. Securities are sold on the stock market and here the connection between real and fictitious capital is lost.

1. Definition

IN International standards In accounting (IAS), capital is defined as the value of an enterprise's assets after deducting its liabilities. The equity capital in the form of the firm's resources or assets is shown after liabilities. Own share capital is equal to the company's net assets, which are defined as the difference between assets and liabilities. Thus, equity is a residual liability - a liability for the assets remaining after debts to creditors have been paid.

Accounting for equity capital in the IAS system is maintained to show the sources of equity capital and the rights of the various investors of capital. According to IAS, share capital is the amount of capital received by an enterprise through various transactions; The main source of paid-up capital is the issue of shares. The capital contributed by owners as a result of the issue of shares is broken down into the authorized capital (the par or stated value of the shares) and amounts received in excess of the authorized capital (or, in rare cases, a discount below the amount of the authorized capital).

According to the Russian accounting system ("Regulations on accounting and reporting in Russian Federation", approved by order of the Ministry of Finance of the Russian Federation dated December 26, 1994 No. 170), the company’s equity capital takes into account the authorized, additional and reserve capital, retained earnings and other reserves.

The authorized capital and the actual debt of the founders for contributions to the authorized capital must be taken into account and reflected in the reporting separately.

The amount of additional valuation of non-current assets carried out in the prescribed manner, valuables received free of charge and other similar amounts should be accounted for as additional capital.

Reserve capital created in accordance with the law to cover non-productive losses and pay income in the absence or insufficient profit during the reporting period for these purposes must be accounted for and reflected separately.

Both in the IAS and RSU systems, analytical accounting for account 85 “Authorized capital” should be organized to reflect information about the founders of the enterprise, the stages of capital formation and information about various types of contributions (shares, stocks, shares).

2. Differences between IAS and RSU standards

The differences between IAS and RSU standards when accounting for capital are as follows:

Own shares (shares purchased from shareholders), which in the RSU system are accounted for in account 56 “Cash documents” and are shown on the balance sheet as part of long-term or short-term financial investments.

Account 85 “Authorized capital” reflects information on the par value of shares, as defined in the company’s charter.

Account 87 “Additional capital” should be analyzed by subaccounts:

  • Subaccount 87-1 "Increase in property value due to revaluation." In accounting according to IAS standards, the value of fixed assets can be revalued at current market prices. This value is determined as a result of an appraisal, usually carried out professional appraisers. In accordance with IAS standards, increases in the value of assets resulting from their revaluation are reflected directly in the capital account. In accordance with the RSU, the amount of decrease in the value of assets obtained as a result of revaluation is debited to subaccount 87-1. According to IAS standards, a decrease in the carrying amount of assets as a result of revaluation should be recognized as a loss. If during the previous revaluation the value of fixed assets was increased, then the decrease must be correlated with the increase in the value of the property obtained as a result of the revaluation of the same asset. For example, where revaluation is not carried out according to IAS standards, revaluation under subaccount 87-1 should be reversed. Further changes in the value of the fixed assets will then be made based on the adjusted historical cost. An example is adjustments to the value of fixed assets taking into account inflation.
  • Subaccount 87-2 "Share premium". The amount received in excess of par value must be distributed between preferred and common shares. In accordance with IAS standards, the amount in excess of the par value is shown in the capital section of the balance sheet after the par value of the shares of a particular type.
  • Subaccount 87-3 “Values ​​received free of charge.” In accordance with IAS standards independent appraiser must evaluate assets. Values ​​received free of charge are shown as subsidized capital in the capital section.

Account 88 "Retained earnings (uncovered loss)". Under IAS, retained earnings can be charged to the retained earnings reserve. Direction retained earnings for specific purposes only limits the amount of dividends possible for payment. This does not guarantee the availability of funds to meet these goals because the company may have a large balance of retained earnings without having sufficient liquid assets. Expenses are never charged to retained earnings. When the goal is achieved or the event for which the reserve was created occurs, the amount is returned in the original amount to the retained earnings account. Unlike IAS, in the Russian accounting system, account 88 is used for various purposes, as noted below, and needs to be analyzed as follows:

  • Subaccount 88-1 “Retained earnings (loss) of the reporting year” is usually used to record information on the distribution of dividends and is usually not adjusted according to IAS standards (retained earnings are subject to adjustment to the profit and loss account).
  • The amount from the above-mentioned subaccount after the distribution of dividends is transferred to subaccount 88-2 “Undistributed profit (uncovered loss) of previous years.” Typically, corrective entries are not made on this account as per IAS standards.
  • Subaccount 88-3 "Accumulation funds". In accordance with IAS, the use of retained earnings to replenish these funds should be reflected by corrective entries to retained earnings after achieving the goal. These funds, in accordance with the RSU, are used to reflect the use of retained earnings to finance capital expenditures and other similar purposes. These funds can be used to cover losses for the reporting year, to pay income to shareholders, and to cover expenses not included in the original cost of fixed assets. Therefore, for the purposes of IAS, additional analysis must be carried out for subaccount 88-3 “Accumulation Funds” to reclassify transactions made during a given period. Part of the accumulation funds should be transferred to the retained earnings account.
  • Subaccount 88-4 "Fund social sphere". Corrective entries must be made similar to entries in subaccount 88-3. In addition, the cost of gratuitously received valuables accounted for in this subaccount, according to IAS standards, must be reclassified as gratuitously received valuables.
  • Subaccount 88-5 "Consumption funds". This sub-account takes into account funds of retained earnings allocated (reserved) for the implementation of measures for the development of the social sphere (except for capital investments) and material incentives workers and other similar activities that do not lead to the formation of new property. Under IAS, these funds must be reclassified as an item in the income statement.

Account 96 "Targeted financing and revenues" For Russian accounting this account is shown in the "Capital and Reserves" section balance sheet and reflects subsidies (grants) received from the government and other enterprises. In accordance with the IAS, subsidies are classified depending on the purpose for which they are received - assets or income. Asset-based subsidies are subsidies that qualify for the purchase, construction, or other acquisition of long-lived assets. Income-related subsidies are non-asset related subsidies. Grants attributable to assets must either be shown on the balance sheet as deferred income or deducted from the value of the assets. Subsidies attributable to income must be shown separately or deducted from related costs.

3. Information requirements

  • When analyzing the authorized capital, it is necessary to have the following information for each class of issued shares:
  • declared share capital
  • issued and fully paid shares at the beginning of the reporting period
  • shares issued and paid in the reporting period
  • shares issued and fully paid at the end of the reporting period
  • information on the opening balance, movement and ending balance of existing own shares
  • information on the opening balance, movement and ending balance of receivables from shareholders
  • During the analysis of accounts (81, 86, 87, 88, 89), summarizing information about the state and movement of funds, it is necessary to have the following information:
  • opening balance
  • movement on the debit of accounts for the reporting period
  • movement on the credit of accounts for the reporting period
  • balance at the end of period
  • When breaking down the total movement by debit and credit of an account for the reporting period, the following information must be provided:
  • Account number
  • posting date
  • correspondent account debit/credit
  • transaction amount
  • wiring description

For accounting in IAS standards, these transactions should be distinguished into the following categories:

  • expenses recorded in fund and reserve accounts
  • movement between fund and reserve accounts (needs to be reconciled)
  • revaluation of investments and assets to reflect changes in market value
  • revaluation of assets, investments, share capital in foreign currency
  • premium to the par value of shares sold at a price above par
  • contributions to funds and reserves for the reporting period
  • dividends paid during the reporting period

You should then analyze funds and reserves into the following categories, showing the opening balance, the movement during the reporting period, and the closing balance of the reporting period:

  • capital revaluation account
  • foreign currency revaluation account
  • share premium account
  • income accounts
  • general reserves (if necessary)

Government subsidies (grants) received should be analyzed as follows:

  • date of receiving
  • amount received
  • the purpose of the subsidies, i.e. for the acquisition of assets or income
  • account balance after deducting annual write-offs
  • If the subsidy is allocated for the acquisition of assets, then the following detailed information must be provided for each asset to which it relates:
    • book value
    • lifetime
    • Date of purchase
    • accrued depreciation and wear rate
    • remaining service life

Grants relating to income should be shown as other income in the profit and loss account or related to the related expenses to which they relate. Grants for the acquisition of assets can either be related to the original cost of the assets or shown in a deferred income account on the balance sheet, with depreciation charged over the life of the assets.

4. Presentation of information regarding capital.

In an IAS balance sheet, share capital may be presented as follows:

Share capital:

X% Preferred Shares, $ XXX Par Value, XXXXX shares authorized, issued and outstandingissued and outstanding

Common shares, $ X Par value, XX, XXX shares authorized for issue; X, XXX shares issued; X, XXX shares subscribed for; X,XXX own shares

Ordinary shares for which X, XXX shares were subscribed

Share premium - Preferred shares, Ordinary shares

Paid-up capital on treasury shares

Subsidized capital

Total paid-up capital

retained earnings

Minus: Repurchased shares (X, XXX) at cost

Total: Share capital

The amount and types of shares that a company can issue are specified in the company's charter. Issuing multiple classes of shares gives a company the opportunity to raise capital from a variety of investors. The charter also specifies authorized shares - maximum amount shares of each class that may be issued. A company wishing to issue more than the authorized number of shares must first amend its articles of association. Shares issued and sold to shareholders represent issued shares companies. Some of these shares may be repurchased by the company. Shares held by shareholders are called - in circulation, while repurchased shares are called own. When only one class of shares is issued, such shares are called ordinary shares. Shareholders, holders of ordinary shares, make up the bulk of the owners. They have the right to vote, share in profits, participate in additional issues of shares and, in the event of liquidation, a share in the assets after the satisfaction of the main claims against the company.

Preferred shares have a number of characteristics that distinguish them from common shares. Preferred stock has several advantages over common stock, usually with respect to dividends and assets upon liquidation of the company. When the board of directors declares a distribution of profits, preferred stockholders are entitled to receive a certain annual dividend amount before common stockholders.

Subsidized capital presented own shares received as a result of transfer and then sold. The amount received is credited to the "Subsidized Capital" account to form paid-up capital. The current market value of any property donated to the company may be credited to the Subsidized Capital account.

The quarterly reporting requirements for 1996 provide for the following in the “Capital and Reserves” part of the balance sheet prepared in accordance with Russian system accounting.

Authorized capital (85)

Additional capital (87)

Reserve capital (86) including:

  • reserve funds formed in accordance with the law;
  • reserves formed in accordance with the constituent documents.

Savings funds (88)

Social Sphere Fund (88)

Targeted funding and revenue (96)

Retained earnings from previous years (88)

Retained earnings of the reporting year

Based on the legislation currently in force ( the federal law RF “On Joint-Stock Companies” dated December 26, 1995 No. 208-FZ), when creating enterprises (companies) in the form of a joint-stock company, the authorized capital of the company is made up of the par value of the company’s shares acquired by shareholders. The par value of all ordinary shares of the company must be the same. the company's capital determines minimum size the company's property guaranteeing the interests of its creditors. The Company has the right to place ordinary shares, as well as one or more types of preferred shares. The par value of the issued preferred shares must not exceed 25% of the company's authorized capital.

When creating a company, all its shares must be placed among the founders. The number and par value of shares acquired by shareholders (shares issued) must be determined by the company's articles of association. The number and par value of shares that the company has the right to place in addition to the placed shares (authorized shares) may be determined by the company's charter.

The company creates a reserve fund in the amount provided for by the company's charter, but not less than 15% of its authorized capital. The company's reserve fund is formed through mandatory annual contributions until it reaches the size established by the charter. The amount of annual contributions is established by the company's charter, but cannot be less than 5% of net profit until the amount established by the company's charter is reached.

The company's reserve fund is used to cover its losses, as well as to repay the company's bonds and repurchase the company's shares in the event of a lack of other funds. The reserve fund cannot be used for other purposes.

The company's charter may provide for the creation of a special fund for the corporatization of company employees using net profits. The funds of such a fund are used exclusively for the acquisition of company shares, sold by the shareholders of this company, for subsequent distribution to its employees.

5. Differences in the provision of information regarding capital in accordance with IAS and RSU standards

The provision of information regarding capital in accordance with RSU and IAS standards differs in the following positions:

  • in RSU, grants are reflected in the capital and reserves section
  • the RSU does not make an adjustment to the amount of the authorized capital in relation to its own shares purchased by the enterprise
  • the RSU does not require a breakdown to disclose information on various types shares, as well as par value and value in excess of par value of shares in terms of capital

There are no significant differences in the definition of types of shares in RSU and IAS.

6. Eliminate differences

Below is the following example for reconciling the capital part according to RSU standards with IAS. The following information is obtained from the company's balance sheet and accounting records.

  1. account 56 "Cash documents." Final balance RUB 27,000,000, including RUB 20,000,000 for 2 shares purchased from shareholders.
  2. account 85 "Authorized capital." Final balance RUB 1,000,000,000. The following information was obtained from the company's charter - 80 ordinary shares with a par value of RUB 10,000,000. and 20 preferred shares with a par value of 10,000,000.
  3. account 87 “Additional capital.” The final balance in the amount of RUB 500,000,000 includes information on the following subaccounts:
    4.
  1. subaccount 87-1 "Increase in property value by revaluation." Final balance RUB 300,000,000.
  2. subaccount 87-2 "Share premium". The ending balance is in the amount of RUB 100,000,000. represented by 40 ordinary shares.
  3. subaccount 87-3 “Values ​​received free of charge.” The ending balance is in the amount of RUB 100,000,000. refers to equipment received from Minlk OJSC.
  1. account 88 "Retained earnings (uncovered loss)." Final balance RUB 170,000,000. includes information on the following subaccounts:
  1. subaccount 88-1 "Retained earnings of the reporting year." 150,000,000 rub.
  2. subaccount 88-2 "Retained earnings of previous years." 10 rub.
  3. subaccount 88-3 "Accumulation funds". 20,000,000 rub.
  1. account 96 "Targeted financing". In fact, 29,999,990 rubles were received from the local budget to finance food in the workers' canteen.

Now you can prepare a balance sheet for capital according to IAS standards:

Share capital:
All data in rubles

Preference shares, par value 10,000,000, 20 shares authorized, issued

Ordinary shares, par value RUB 10,000,000, 80 authorized shares, issued

Share premium on ordinary shares

Subsidized capital

Increase in value due to revaluation

Total paid-up capital

retained earnings

4.1.,4.2,4.3., 5

Minus: Own shares (2 shares) at par

Total share capital

Note:

Retained earnings from previous years must be added to the retained earnings of the reporting year, and a corrective entry must be made to allocate retained earnings to accumulation funds and added to retained earnings for reporting year(4.1., 4.2., 4.3.). Local budget funding is in the form of a grant attributable to income and therefore must be deducted from food costs (5), which will ultimately increase retained earnings.

7. Disclosure requirements

The Shareholders' participation (Shared capital) section of the balance sheet in the IAS system should be shown as follows:

Share capital

For each class of share capital:

  • The number or amount of authorized shares issued and outstanding;
  • Unpaid capital;
  • Nominal or actual value of shares;
  • Movement in share capital accounts for the reporting period;
  • Rights, privileges and restrictions regarding the distribution of dividends and payment of capital;
  • Debt on cumulative dividends;
  • Repurchased shares; And
  • Shares reserved for future issues under option and put contracts, including terms and amounts.

Other capital, including movements during the reporting period and any restrictions on distribution:

  • Share premium;
  • Increase in value as a result of revaluation;
  • Reserves; And
  • Retained earnings.

2.2.1. Own capital structure.

Securities intended for the formation or increase of equity companies' capital, aimed at Receiving a profit, which they will then share with the holders of these securities, are called capital securities. These include stocks, bonds, shares of cooperatives, investment certificates, mortgage notes and their varieties.

The capital securities market serves as the basis for the formation of capital of a joint-stock company.

The equity capital of a joint stock company includes:

– share capital itself and reserve capital, which is created through deductions from profits (used as a reserve fund) to obtain equity capital and to pay dividends during periods of market downturns.

Securities are an advanced portion of a company's equity capital. Advance capital has the following structure:

– authorized capital (issued shares at par value);

– the amount received by the joint-stock company when selling shares at a cost exceeding their nominal value (share premium);

– shares issued and distributed among shareholders for dividends at par value;

– the value of shares for which subscription has been made, but which have not been fully paid by shareholders, is excluded from the amount of paid-up capital;

– the cost of own-issued shares purchased from shareholders at a price agreed with the founders is excluded from the amount of paid-up capital.

The classification of the advanced part of equity capital (authorized, share, additionally invested, unpaid and withdrawn) is based on the principle of its reflection in the accounting accounts and balance sheet of the company.

In the UK, as in most developed Western countries, such organizational and legal forms of companies as joint-stock companies and partnerships predominate. This indicates the predominance of the share of investment contributions in equity capital. Therefore, equity capital is often viewed as borrowed by the company and subject to repayment in the future. Sources of funds are divided into two groups - own (share) capital and loan (raised) capital. Both the first and second are obligations, debts of the joint-stock company, because sooner or later the funds received will have to be returned. And the advanced capital, which constitutes an insignificant share in the equity capital of such firms, is presented in the financial statements in a fairly collapsed form (mainly as share capital and additional capital).

Similarly, advanced capital is presented in the balance sheets of France and Greece (share capital and share premium), Austria and Sweden (share capital), Australia (declared share capital and share capital), the Czech Republic ( authorized capital and capital funds, including issue premium), Germany (authorized capital), Russia (authorized capital and additional capital).

In Estonia, advanced capital is divided into:

Share capital or share capital at par value;

Agio (over/understatement of face value);

Capital transferred under a gift agreement;

Own shares or own shares (reduce the amount of advanced capital).

French companies can only buy back and sell their own shares under certain conditions: for transfer to employees, when reducing share capital or for the purpose of regulating the market situation if the company is listed (in which case it can enter into agreements with no more than 10% of the shares) . Repurchased treasury shares are shown as an asset on the balance sheet.

In Belgium, the advanced part of equity capital is represented by:

Share capital;

Share premiums (the difference between the issue price and the par value that is not subject to distribution);

Investment subsidies.

Unpaid amounts of authorized capital are accounted for in Belgium as receivables.

In Ukraine, depending on the stage of formation, share capital can be: announced, signed, paid, redeemed. The structure of equity capital is shown in Fig. 2.15.

Equity is the abstract value of property owned by the owners of a joint stock company. The amount of equity shown on the balance sheet depends on the valuation of assets and liabilities. Typically, the total amount of equity capital only coincides with the total market value of the company's shares or the amount that can be received by sale net assets parts or the joint stock company as a whole based on the principle of continuity.

Rice. 2.15. JSC equity capital structure

At one time, the concept of “fictitious capital” was recognized in Marxist literature, which denoted not real capital, presented in the form of factories and factories, inventory, machinery and equipment, gold and money, but its reflection in securities. The Marxist interpretation of the essence of shares reveals them as securities that do not create value or surplus value, but indicates that the fictitious capital represented in shares is closely related to industrial capital, which, in turn, has the ability to self-expand and create value. Fictitious capital, expressed in shares, “emerges and develops on the basis of industrial capital, influencing the process of changing its investment attractiveness.”

The latter receive independent movement in isolation from real capital, which they represent in the documentary form of securities. The current stage of circulation of financial and credit instruments in documentary and non-documentary (in the form of electronic files) forms is fundamentally different from their previous state - fictitious capital. A couple of decades ago, the non-cash form of existence of securities meant entries in special books that were kept by special registrars. Currently, non-cash document management is most often carried out in the form of electronic records, which are virtual in nature. The virtual state completely removes restrictions (territorial and temporal) from the previous fictitious capital and gives it new elements that relate more to information-cosmopolitan categories than to simple paper documents.

Share capital is the main, basic, initial capital of a joint stock company, formed through the issue and sale of shares. It consists of shareholders' funds pooled for the purpose of making a profit. In essence it is a mixed form of ownership. In general, this is the property of a joint-stock company, which is one of the forms of private property, an individual or collective subtype, called joint-stock or corporate.

During the formation of share capital there are:

1) unpaid– part of the shares that shareholders have not yet paid for;

2) fully paidny– share capital resulting from full payment by shareholders of the shares they purchased.

Capital in the form of shares is currently the most common What is determined by a number of advantages of share capital. Creating a joint stock company allows you to collect significant sums in a short period of time, which serve as the basis for new production or develop existing organizations. Yes, Russian railways are developing mainly through the creation of joint stock companies. Shares allow you to quickly move funds from one industry to another and between companies, so the economy develops at an accelerated pace. The emergence and development of joint stock companies and relations between them also changed property relations. In essence, shares are a type of private property; they are the collective property of investors (shareholders). Through transactions for the sale and purchase of shares, the owners of capital change, but this does not in any way affect the existence and well-being of the companies. This clearly shows that fixed capital is not necessary for reproduction, it is necessary only for the creation of an organization. A joint stock company allows you to transfer the means of production to the company's employees themselves, which eliminates the need to pay dividends and maintains profits. Development shareholder form capital greatly facilitated the merger of various capitals, including those operating in different sectors of the economy.

Share capital used – These are contributions received from shareholders in payment for shares placed by the joint-stock company, used by the company to carry out statutory activities and make profit.

Invested capital– these are funds invested in the company’s assets by shareholders in exchange for shares and forming part of the equity capital of the joint-stock company. When dividing profits between shareholders, it is the amount of invested capital that is taken as the basis, and a percentage of profit is calculated on the cost of shares purchased by the investor. The deposit amount is indicated in memorandum of association, in the list of investors. Thus , the main document that secures the shareholder’s ownership of a share in the authorized capital of a joint-stock company is a share - a security that does not have a final maturity date.

Capital invested in a share cannot be claimed back by its holder (except in the event of liquidation of a joint stock company). However, it can be converted into money by selling this paper. The owner of a share has limited liability, i.e., is not liable for the obligations of the company as a whole. An investor cannot lose more than he or she invests in a stock.

The authorized capital at the time of creation of a joint-stock company is the totality of assets paid for shares issued by the joint-stock company, which is equal to their total par value.


Volkova O. N. Accounting in Great Britain // Accounting. 1999. No. 9. P. 96–102; Richard J. Accounting: theory and practice / Transl. from French; edited by Y. V. Sokolova. M.: Finance and Statistics, 2000. 160 pp.; Ostrovsky O. M., Kovalev V. V.. Integration of Russia into the international accounting community // Accounting. 2002. No. 5. P. 73–78; Hammer Ya.V. Conservatism as a basic principle of accounting: the experience of Germany // Accounting. 1999. No. 8. pp. 105–108.

Lynnax E. Book about accounting accounts / Transl. from Estonian A. Svirina; ed.: V. Weingort, L. Pavlova. Tallinn: First Hand Publishing House, 1996. 212 p.

Sokolov Ya. V., Semenova M. V. Accounting in France // Accounting. 2000. No. 5. P. 69–77.

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On a corporation's balance sheet, the share of owners is called own capital shareholders, as shown below.

Please note that the equity section of the corporate balance sheet consists of two parts: (1) share capital And (2) retained earnings. Share capital represents the initial investment of shareholders in a corporation. Retained earnings are profits earned by a corporation since its inception. commercial activities less losses, dividends, or transfers to share capital.

In many countries, the amount of retained earnings is the basis for calculating the maximum possible distribution of past earnings to shareholders. Retained earnings are not funds subject to distribution to shareholders. Retained earnings represent earnings reinvested in the corporation.

In accordance with the principles of completeness of information reflection, the “Share Capital” section of the shareholders’ equity of the corporate balance sheet contains significant information about the corporation’s share capital: types of shares, their par value, the number of shares authorized for issue, the number of shares issued and in circulation. The information contained in the Shareholders' Equity section of shareholders' equity is the subject of the rest of this chapter. A detailed discussion of retained earnings is given in the chapter on profits and retained earnings.

Share capital

The unit of ownership in a corporation is a share. The holder of shares receives a stock certificate indicating the number of shares of the corporation held by that shareholder. He can transfer his property at his discretion. To transfer to another person, the owner of the stock must sign the stock certificate and deliver it to the secretary of the corporation.

In large corporations listed on specially established stock exchanges, it is difficult to keep records of shareholders. Such corporations issue millions of shares, and several thousand shares may change hands in one day. Therefore, such corporations often appoint independent recorders and transfer agents, usually banks or trust companies that perform secretarial functions. They are responsible for carrying out the transfer of shares in the corporation, maintaining the register of shareholders, compiling the list of shareholders for shareholder meetings, and paying dividends.

When issuing shares, corporations often engage underwriters, who act as intermediaries between the corporations and potential investors. For a fee, usually less than one percent of the sale price, the underwriter ensures that the shares are sold. In the share capital and share premium accounts, the corporation records the amount of net proceeds from the issue of shares, i.e. the amount paid for shares by purchasers, less underwriter's fees, attorney's fees, printing of certificates, and other costs directly attributable to the issuance of shares.

Capital authorized for issue

In most countries, when a corporation applies for permission to incorporate, the draft bylaws must state the maximum number of shares that the corporation is allowed to issue. This quantity represents the capital authorized for issue. Most corporations are authorized to issue more shares than are required at the time of incorporation. This allows the corporation to issue more shares in the future to raise additional capital.

For example, if a corporation plans to expand its operations in the future, then unissued shares authorized for issue in the articles of incorporation would be a possible source of capital. If all authorized capital was issued at once, then the corporation will have to apply to the state for permission to amend the charter to increase the number of shares authorized for issue.

The articles of association also state the denomination or par value of those shares that have been authorized to be issued. The denomination, or nominal value, is an arbitrary value, often established by law, which must be printed on each share. This value is reflected in the "Share Capital" accounts and represents the authorized capital of the corporation.

The authorized capital is equal to the number of issued shares multiplied by their par value; it is the minimum amount that can be reported as share capital. Par, or face value, is usually not comparable to the market or book value of the stock. When a corporation is formed, a general journal entry may be made to show the number and description of shares authorized.

Issued and outstanding capital

Issued capital represents shares sold or otherwise transferred to shareholders. For example, a corporation is permitted to issue 500,000 shares, but the corporation may choose to issue only 300,000 shares at the time the corporation is organized. The holders of these 300,000 shares own 100% of the corporation's assets. The remaining 200,000 shares are unissued. They do not provide any rights or privileges until they are released.

Capital in circulation are shares issued and outstanding. A share is not considered outstanding if it has been repurchased by the issuing corporation or returned to that corporation by the shareholder. In such cases, the number of shares issued will be greater than the number of shares outstanding. Those issued shares that have been repurchased and are held by the corporation are called treasury shares, which we will discuss in more detail later in this chapter.

Ordinary shares

A corporation can issue two main types of shares - common and preferred. If only one type of shares is issued, they are called ordinary shares. Common stock is the remaining equity of a corporation.

This means that in the event of liquidation of the company, the turn to satisfy the claims of holders of ordinary shares comes only after the turn of all creditors and holders of preferred shares. Because common stock is typically the only stock that gives its holders voting rights, it provides a way to control the corporation's activities.

Share capital - the fixed capital of a joint-stock company, which is formed through the issue of shares. It is the authorized capital, since its size is determined by the charter of the company.

1.1 Formation of share capital

The share capital of a joint-stock company is the amount of contributions of participants allocated to ensure the statutory activities of the company. The amount of share capital is determined by the constituent documents in accordance with the law. From an economic point of view, share capital is property, i.e. economic resources enterprise at the time of its creation. The participant’s share in the company’s share capital is calculated using the formula:

Di=Cni: Ck x100%,

Di– share in the share capital of the i-th participant of the company

Cni– nominal value of the participant’s share in the company’s share capital

Ck– value of share capital (registered by the company).

The actual value of a company participant's share corresponds to part of the value of the company's net assets, in proportion to his share.

As a contribution to the share capital, property can be contributed, both in cash and in kind, as well as property or other rights that have monetary value. The contribution of non-monetary contributions by participants to the share capital of the company requires an assessment of their value by independent experts.

In accordance with the law, the size of the share capital of a closed joint stock company must be at least 100 times the minimum wage established by the Federal Law on the date of submission of documents for state registration of the company, and for an open joint stock company - at least 1000 minimum wages.

1.2. Increase in share capital

In the course of the enterprise's activities, there may be a need to increase share capital. This is possible if two main conditions are met:

1. Its amount must be paid in full.

2. The net asset value should not be lower than the registered share capital.

In accordance with Art. 17 of the Law of the Russian Federation No. 14-FZ, the share capital of the company can be increased:

    due to additional contributions of participants and third parties accepted into the society.

In accordance with Art. 52 of the Civil Code of the Russian Federation, changes made to the constituent documents of the company become effective for third parties from the moment of their state registration. This means that the founders can make a contribution before the registration of changes, but for any other person these amounts are not made as a contribution to the share capital until the state registration of the charter. In this regard, a situation may arise when a contribution to share capital may be considered as a gratuitous receipt of funds from legal or individuals, if it is not registered in the prescribed manner. This entails obligations to pay income tax, because these funds must be included in income from non-operating operations.

    increasing the authorized capital at the expense of property.

Carried out by decision of the general meeting of participants, adopted by a majority of at least 2/3 of the votes of their total number, unless the need for a larger number of votes to make such a decision is not provided for by the charter. The decision to increase the company's share capital at the expense of property can be made only on the basis of accounting data. the company's financial statements for the year preceding the year during which such a decision was made. In this case, the provisions of Art. 18 of Law of the Russian Federation No. 14-FZ to the extent that the amount by which the company’s share capital is increased at the expense of its property should not exceed the difference between the value of net assets and the amount of authorized and reserve capital. Deferred income is not taken into account in calculating net assets.

The sources of replenishment of share capital in this case are additional capital (funds received from the revaluation of property, share premium, gratuitously received valuables), retained earnings, accumulation funds, reserve capital. If the revaluation is carried out for those objects that were made as a contribution to the share capital of the joint-stock company, then the cost of the costs or the amount of the participant’s contribution is determined, as if he had made a contribution at market prices at the time of the revaluation.

The results of the revaluation of objects are documented in an act of the expert conducting the revaluation and a statement of revaluation of fixed assets.