Reserves and Surplus are essential components that require careful classification. The following categories help organize these items effectively: i) Capital Reserve: This category includes reserves set aside for specific capital-related purposes. ii) Capital Redemption Reserve: Here, reserves are accumulated to facilitate the redemption of capital. iii) Securities Premium Reserve: This category comprises the premium received from the issuance of securities. iv) Debenture Redemption Reserve: Reserves are earmarked to ensure the timely redemption of debentures. v) Revaluation Reserve: In this category, the reserves reflect the revaluation of assets or liabilities. vi) Share Options Outstanding Account: This is a separate item that records the credit balance related to employee share-based payments. vii) Other Reserves (Specifying nature and purpose): Any additional reserves with specific purposes are grouped under this category, clearly specifying their nature and intended use. viii) Surplus: The balance from the statement of profit and loss is disclosed here, indicating allocations and appropriations, such as dividends, bonus shares, and transfers to/from reserves. |