Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is a "Capital Redemption Reserve"? What purpose does it serve?

Accounting Financial Accounting Financial Management Bank Accounting managerial accounting
user-image
Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/11/27
Upvote (0) Views (6) Followers (1) Answers (4) Report Question
Write an Answer
Register now or log in to answer.
Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

The capital redemption reserve is a non-distributable reserve and represents paid up share capital.

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

To repay the money if the company wants to cancell the shares or wants to reduce its share capital, the money reserved for redemption of shares, be utilized to reduce the shares by making the payment to its investors.

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

I agree with Mr. Malik, it is a specific purpose reserve and reserved for redemption of Shares and applied when it is needed to buy back the issued shares.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

AGREE WITH MR MALIK & MR KHALED ANSWERS  

Write Your Answer
More Questions Like This