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i think it is a capital Reserve because it has limited use.it can be used only for 5 purposes i.e. in accordance with sec.78 and for buy back in accordance with sec.77A
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∙ 11y ago
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Is capital reserve a free reserve?
capital reserve is not a free reserve
Define capital reserve?
Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.
Why is capital redemption reserve created?
No
Defrance between Complex Capital Structure and simple capital structure?
In simple structure,there is only common stock.There are no potentially dilutive securities. In complex structure potentially dilutive securities are present. Dilutive here means that the securities are capable of affecting the earnings per share in a downward direction. the securities are simply either bonds,option,etc
How does Selling marketable securities for cash affect net working capital?
DECREASES
What is security premium reserve?
Securities premium reserve is the amount when securities are issued at premium that is more than their face value.
Can capital redemption reserve account be created out of securities premium account?
No. CRR should be created out of divisible profits only
Is Share premium as capital or revenue reserve?
Share Premium is a Capital Reserve. They cannot pay dividends because share premium is a non trading activity.
Is share premium a capital reserve?
yes
What are free reserves under companies act 1956?
investment allowance reserve, capital reserve received in cash, security premium received in cash,capital redemption reserve,
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
When was Berkshire Capital Securities created?
Berkshire Capital Securities was created in 1983.
What is official reserve account?
The official reserve account, a subdivision of the capital account, is the foreign currency and securities held by the government, usually by its central bank, and is used to balance the payments from year to year.
Is capital reserve a free reserve?
capital reserve is not a free reserve
What do the securities held as assets by the Federal Reserve Banks consist mainly of?
The securities held as assets by the Federal Reserve Banks consist mainly of
Can share premium be use to distribute as dividend?
no ,securities premium not used as a dividend
Is revaluation reserve a capital reserve?
Yes...revaluation reserve is a part of capital reserve.
