(1) Subscribed capital is to be recognised at its nominal amount. The contributions to the subscribed capital that are outstanding and have not been called in are to be shown separately as a deduction from the item “Subscribed capital;” the remaining amount is to be shown in the item “Called-in capital” in the main column under liabilities; the amount called in that has not yet been paid in is to be separately shown under receivables and is to be designated accordingly.
(1a) The nominal amount or, should no such nominal amount exist, the calculated value of the own shares acquired is to be shown separately as a deduction in the summary column for the item “Subscribed capital.” The difference between the nominal amount or the calculated value and the cost of acquiring the own shares is to be set off from the freely disposable reserves. The expenditures constituting incidental expenses of the acquisition constitute expenditures of the financial year.
(1b) Following the sale of the own shares, they will cease to be shown pursuant to subsection (1a) sentence 1. Any difference that exceeds the nominal amount or the calculated value resulting from the sale proceeds is to be allocated to the respective reserves up to the amount set off from the freely disposable reserves. Any difference that is greater than this amount is to be allocated to the capital reserves pursuant to subsection (2) no. 1. The incidental expenses of the sale constitute expenditures of the financial year.
(2) The following are to be shown as capital reserves:
1. the amount obtained through the issue of shares, including shares of a new issue, insofar as it exceeds the nominal amount or, where no nominal amount exists, insofar as it exceeds the calculated value;
2. the amount obtained by the issue of debentures for convertible bonds and option rights for the acquisition of shares;
3. the amount of the additional payments made by shareholders in return for a preferential right for their shares;
4. the amount of other additional payments made by shareholders into the equity capital.
(3) The only amounts that may be shown as retained earnings are those that have been formed from the profit / loss for the financial year or from that for an earlier financial year. This includes legal reserves to be formed from the profit, or provisions to be formed pursuant to the articles of association or statutes, as well as other retained earnings.
(4) A reserve is to be formed for shares held in a controlling enterprise or in an enterprise holding a majority participating interest. An amount is to be allocated to the reserve that corresponds to the amount recognised under assets on the balance sheet for the shares in the controlling enterprise or the enterprise holding a majority participating interest. The reserve, which is to be formed already when drawing up the balance sheet, may be formed using those freely disposable reserves that are available. The reserve is to be reversed insofar as the shares in the controlling enterprise or enterprise holding a majority participating interest are sold, issued or redeemed or if a lower amount is recognised under assets.
(5) If the portion of the net income for the year that is attributable to a participating interest in the profit and loss account exceeds the amounts that have been received as a dividend or as a share of the profits, or if it exceeds the amounts that the share capital company is entitled to receive in payment, then the difference is to be allocated to a reserve, the distribution of which is not permissible. The reserve is to be reversed to the extent the share capital company receives payment of the amounts or acquires a claim to their payment.