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Funding a business
Two Ways To Improve The Fund Reserves Of A Company
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[QUOTE="Suba, post: 238959, member: 3658"] Each country will apply different policies to the rules of a company's reserve fund, so that the application to accounting records will be slightly different (GAAP). Reserve funds are generally divided into 2, namely mandatory reserve funds and other reserve funds that have different purposes and uses. To improve the Reserve Fund, it will be taken from Retained Earning, which is net profit after deducting dividends. The addition of the Reserve Fund will continue to be made until it reaches at least 20% of the paid-up or issued capital. In my opinion, to increase net profit by cutting costs (efficiency) of production costs, both raw materials, labor and overhead costs will have an impact on decreasing the quality of production goods. Another way to improve the Reserve Fund is through shareholder meetings, to reduce the portion of dividend distribution so that retained earnings will be greater and part of retained earnings can be allocated to reserve funds. [/QUOTE]
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Two Ways To Improve The Fund Reserves Of A Company
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