Additional capital is the amount of revaluation of non-current assets or budgetary appropriations that are aimed at replenishing current assets. It refers to the company's own funds.
The equity capital of the company is formed at the expense of the authorized, additional, reserve capital, as well as accumulated funds.
Sources of additional capital formation
Additional capital can be formed by the following elements:
- share premium received from the placement of shares at a price higher than the par or redemption value;
- the sums of revaluation of non-current assets - the amount of increase, which is achieved by bringing the property to the market price;
- excess of the actual value of the contribution to the authorized capital over its nominal size;
- exchange rate differences arising from the formation of the authorized capital;
- the amounts of the incoming recovered VAT when the property is made in the form of a contribution to the authorized capital;
- property received free of charge;
- appropriations received from the budget, which are aimed at financing capital investments; the basis for the inclusion of these funds is their intended use.
Also, additional capital arises from the amounts of retained earnings allocated to long-term investments.
Share premium
The company receives additional share premium when placing shares at a price that exceeds their par value. The latter is determined on the basis of the ratio of the authorized capital and the number of shares. If during the placement the shares were sold at their par price, then the share premium will not be received.
In the course of the secondary placement, share premium can be obtained through the secondary placement of shares after their buyback from shareholders.
Exchange difference
Additional capital from exchange rate differences arises if there is foreign investment in a commercial organization. Investments in the authorized capital in foreign currency are converted into the ruble equivalent. The exchange rate difference is calculated as the difference between investments in the authorized capital in foreign currency in terms of ruble value at the exchange rate of the Central Bank and the founder's debt as of the date of deposit.
For example, the constituent documents provide for a person's contribution in the amount of 10,000 rubles, the founder paid off his debt by depositing $ 300, which at the rate of the Central Bank is 10,664 rubles. Thus, 664 p. will be included in the additional capital.
Excess contribution to the authorized capital and VAT recovery
As a contribution to the authorized capital, not only money can act, but also other property (for example, materials, intangible assets, etc.) If the appraiser concludes that the value of the property is higher than the nominal contribution of the founders, then the company will have additional capital.
If property is a contribution to the Criminal Code, then the founder needs to recover the input VAT on it. It is recovered based on the residual value of the property or at the actual cost of the acquisition.
