Special reservations


Special reserves are a part of the net worth and represent those reserves that are mandatory, but do not constitute the legal reserve.

Sometimes, and for certain operations, the obligation to constitute a reserve is established, for a series of specific reasons. These types of reservations are called special reservations.

Special reserves are one of the three types of reserve, together with the legal reserve (the law establishes a minimum and mandatory reserve based on results and capital stock), the voluntary reserve (of a voluntary nature) and special reserves. In other words, all those that are not legal or voluntary are special reserves.

Types of special reservation

Special reservations are mandatory, but they do not have the same origin, since there are several types:

  1. Statutory reserves: Statutory reserves are those established in the company's bylaws. They are mandatory, but not because the legislator has established it, but because the partners established it when the company was incorporated.
  2. Reserve for amortized capital: This type of reserve is constituted when a public limited company makes a capital reduction with return of contributions using available resources.
  3. Reserve for goodwill: At the time of registering goodwill (which is an intangible asset), the obligation to create an unavailable reserve for the amount of goodwill is established. This reserve, therefore, constitutes the equivalent of goodwill. Excess provision of the goodwill reserve can be transferred to voluntary reserves.
  4. Reserve for own shares: Own shares are those shares that the company has issued and that are owned by the company itself. That is, these shares are not owned by a third party partner, but are owned by the company itself. When this occurs, a reserve must be established for the amount equivalent to treasury shares, which is unavailable as long as these treasury shares exist.

Tags:  cryptocurrencies economic-analysis history 

Interesting Articles