Read Aloud the Text Content

This audio was created by Woord's Text to Speech service by content creators from all around the world.

Text Content or SSML code:

Importance. For the majority of economic agents, capital endowment is a financial source of major importance. It is not by chance, that the size, the structure and the changes to own capital are of interest to all users of financial reports. It is reasonable to analyse the structure of own capital. At this stage, the ratio of the following components are studied: statutory and additional capital; secondary; reserves; non-distributed profit. Objective. Our objective is to obtain a work that will serve as a manual about a own capital, as currently there are no manuals that give useful information or actual facts about what own capital consists of, how it is accounted for, the different methods of growth/reduction and the most important – why it is crucial to know the instruments used to manipulate of own capital. We hope that the findings of this study will be useful as well as clearly expressed. The aim is to understand all the details related to capital, to analyse in detail, in order to understand the core of the problem. Another secondary objective is to understand whether Republic of Moldova’s legislation has taken all the different methods of capital manipulation into account, and if it is possible to use tools that control capital in order to get around legislation, or worse, that completely avoid legislation. Relevance We decided to choose this subject because it is always relevant to analyse capital and it is a topic which every economist should consider at least one in his career. My aim is to prove that the efficiency of own capital control, the tools used to control capital, as well the accounting of capital, because own capital can be seen as an entire universe composed of many smaller capital endowments, that form from income in order to increase a firm’s possibilities, which is what I will demonstrate throughout this study. In the first chapter, we analyse the structure and regulation of own capital, what own capital is composed of, and what elements it contains. The second chapter is based solely on the accounting of own capital and its elements, we use different examples and real-world problems that were solved in accordance with the accounting law. In the third chapter we talked about structure and links, interaction between adjustments of own capital with other elements of the financial report.