{"id":5135,"date":"2014-10-29T08:03:09","date_gmt":"2014-10-29T06:03:09","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=5135"},"modified":"2014-10-26T08:03:44","modified_gmt":"2014-10-26T06:03:44","slug":"statutory-requirements-of-owners-equity","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/statutory-requirements-of-owners-equity\/","title":{"rendered":"Statutory requirements of owner’s equity"},"content":{"rendered":"

There isn\u2019t much happening on equity accounts, if don\u2019t include the main account that impacts total equity daily. Yes, the capital, the share premium, other reserves are as they are with very rarely changes happening to them. However, something to watch out for regardless is the level of those accounts and total equity just as well.\u00a0<\/p>\n

It\u2019s one thing to ensure that your company\u2019s capital meets the minimum requirements and that your reserves are set for purposes mentioned in your local legislation. It\u2019s just as important to ensure that equity accounts you\u2019re not allowed to make payments out of, stay as they are and so on.<\/p>\n

However, it\u2019s another matter to be on the lookout for retained earnings and result for the period impacting your total equity. No doubt your local legislation sets requirements for the amount of total equity, i.e. it\u2019s not allowed to have it be negative or less than the share capital for an example. It\u2019s important to keep track on the health of your company\u2019s equity.<\/p>\n

You wouldn\u2019t want to find out that you could have done something against the situation before it\u2019s too late. Hence, if you\u2019re making losses, ensure that your equity can take it. If it\u2019s only temporary there might not be a problem.<\/p>\n","protected":false},"excerpt":{"rendered":"

There isn\u2019t much happening on equity accounts, if don\u2019t include the main account that impacts total equity daily. Yes, the capital, the share premium, other reserves are as they are with very rarely changes happening to them. However, something to watch out for regardless is the level of those accounts and total equity just as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-5135","post","type-post","status-publish","format-standard","hentry","category-4-6-statement-of-changes-in-equity"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t