TERMINOLOGY, FORMS & METHODS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS. COPYRIGHT RODERICK SEEMAN

SUBCHAPTER 6. CAPITAL

Article 42. Varieties of Capital and Indications of Classifications

Capital shall be divided into paid up capital, legal capital surplus, legal earned surplus and other surplus and entries must be made with items named paid up capital, legal capital surplus, legal earned surplus and other surplus respectively.

2. In the cases of the previous paragraph, when capital is a negative figure, other capital surplus must be entered as a deficit (in negative figures).

3. The provisions of Article 62, Paragraph 1, and Article 63, Paragraph 2 of the Financial Statements, etc. Regulations shall apply mutatis mutandis concerning new stock payments, paid in subscription money for stock after the subscription date, and reserves as determined by law which correspond to legal capital surplus or legal earned surplus.