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Hi sir, may I seek clarification regarding equity reserve? Is share premium and share capital both part of equity reserve?
is equity reserve part of equity section ?
Im slightly confused as there is no standard financial position statement which includes all these accounts.
thank you sir
The reserves are the extra owing to shareholders and include the share premium account (together with the retained earnings and the revaluation reserve).
Equity is the share capital plus all of the reserves.
I explain all of this in my free lectures on limited companies. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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