Extra capital

Additional capital is included as a separate part in the equity of the joint-stock company. It shows the total ownership of all participants of this enterprise. It is an independent subject of accounting and is separately reflected in accounting. This is due to the fact that the change in the size of the authorized capital in the course of the company's activities is possible only in case of re-registration of its amount. Therefore, you can change its value by making a record not on the main account 80, but on an additional to it.

In accounting, additional capital is accounted for in accordance with documents, such as Order of the Ministry of Finance No. 94n of October 31, 2000 "On approval of the chart of accounts", Order of the Ministry of Finance No. 34n dated July 29, 1998 "On Approval of the Regulations on Accounting", Provisions on Accounting No. 154n as of 27.11.2006 and No. 26n on 30.03.2001.

To generate additional capital of the enterprise it is possible from such sources, as:

• Revaluation of fixed assets and intangible assets;
• Means of targeted financing of organizations aimed at financing of basic expenses;
• Share premium of the company after the sale of shares at a higher than the nominal value;
• The differences in the rates that were formed during the formation of the authorized capital;
• Contributions to property.

In the plans of accounts, additional capital is reflected in account 83. The loan shows the increase in the value of assets, identified by revaluation results; The difference between the selling value of shares and the nominal value obtained in the formation of the authorized capital; The amount of special-purpose financing aimed at financing corporate expenses. In the debit, additional capital is recorded in such cases when it is necessary to reflect the repayment of the amount of the decrease in the value of assets identified as a result of revaluation; Send funds to increase the authorized capital (account 75 or 80); Distribute the amount between the founders (account 75).

Additional capital can be used for the following purposes:

• For impairment of intangible assets and fixed assets;
• Coverage of losses;
• Changing the size of the authorized capital at the expense of the property of the company.

In general, it is quite difficult to assess the shares of the participants in the society. According to the changes made to the Tax Code, the property added to the additional capital is not accounted for as income when taxed on profits. Today, it is possible to increase this part of the capital by offsetting the debts of the company to its participants.

The investment of the participants' property in this part of the capital is recognized as compensated, because it is aimed at increasing the value of net assets. At the same time, the actual value of the shares belonging to the participants increases. Therefore, the cost of a share for taxation purposes increases with its implementation.

Investing in additional capital is appropriate, because this leads to an increase in the value of shares in the capital of LLC. In addition, the contribution of property to the additional portion increases the value of the property that the participants will be able to receive upon leaving the society.

When determining the profit tax in the event of a participant leaving the LLC or selling a share, his contribution to the additional portion of the capital is not considered to be a cost. The grounds for this are as follows: the contribution to the property in this case is not a contribution to the authorized capital, the contribution can not be accounted for as an expense according to the Tax Code. It should be taken into account that these grounds contradict the positions of the Constitutional Court, according to which the increase in the value of shares when investing in capital does not lead to a change in the nominal shares of participants. Thus, the contribution of participants for the purpose of changing the net assets upward, which leads to an increase in the value of their shares, can not be taken into account in taxation.

The audit of additional capital is conducted with a view to verifying the correctness of its formation and use. To do this, reconcile the analytical data with turnover and balances of accounting for synthetic and accounting data with accounting records.