Other Components of Equity

This group gathers the equity items that are neither share capital nor accumulated profit: revaluation gains on land and buildings, fair value changes on investments held through other comprehensive income, differences from translating a foreign branch, actuarial gains and losses on staff benefit plans, the general reserve set aside at the AGM and the reserve for share-based pay. They stay apart from Retained Earnings because most are not realised profit and cannot be paid as dividends. The group posts nothing; each reserve has its own ledger beneath it and the Balance Sheet shows the total. A small company may use only General Reserve, but an audited company under NFRS reports the others in its Statement of Changes in Equity.

Other Components of Equity = Revaluation Surplus + FVOCI Reserve + Translation Reserve + Remeasurement + General Reserve + Share-based Payment Reserve

1. 01Go to Accounts Setup > Chart of Accounts, expand Equity, then Other Components of Equity.
2. 02Open a reserve ledger to read its history on the General Ledger.
3. 03Post year-end reserve movements with Invoicing > Journal Entry to the specific reserve, never to this group.
4. 04Read the group total on Financial Reports > Balance Sheet.
5. 05Use the reserve ledgers to fill the Statement of Changes in Equity for the auditor.

Do not post here. Choose the specific reserve child on a year-end Journal Entry.

A Rs 10,00,000 land revaluation and a Rs 20,000 share price gain both sit under Other Components of Equity.