First, the composition of the owner's equity of the parent company
The owner's equity of the parent company is mainly composed of paid-in capital, capital reserve, surplus reserve and undistributed profit. Among them, the paid-in capital is the initial investment of the parent company in the subsidiary company; Capital reserve is formed due to equity premium and other reasons; Surplus reserves and undistributed profits are part of the net profit generated by the operation of subsidiaries.
Two. Changes in owner's equity of parent company
The change of the owner's equity of the parent company is mainly influenced by the operating results of the subsidiaries and the investment activities of the parent company to the subsidiaries. When the subsidiary realizes the profit, the owner's equity of the parent company will increase; On the other hand, if the subsidiary loses money, the owner's equity of the parent company will be reduced. In addition, the parent company's capital increase or decrease in its subsidiaries will also directly affect the owner's equity of the parent company.
Third, the importance of the owner's equity of the parent company.
The owner's equity of the parent company is an important index to evaluate the financial situation and investment value of the parent company. It reflects the economic status and control of the parent company in its subsidiaries, and is also an important basis for the parent company to formulate investment strategies and decisions. Through the analysis and comparison of the owner's rights and interests of the parent company in different periods, we can understand the operating results and development trend of the parent company in its subsidiaries.
To sum up:
The owner's rights and interests attributable to the parent company are the rights and interests enjoyed by the parent company as a shareholder in the subsidiary company, representing the economic interests of the parent company in the operating results of the subsidiary company. It consists of paid-in capital, capital reserve, surplus reserve and undistributed profit, and is influenced by the operating results of subsidiaries and the investment activities of parent companies to subsidiaries. The owner's equity of the parent company is an important index to evaluate the financial situation and investment value of the parent company, which is of great significance to the parent company's investment strategy and decision.
Legal basis:
Company Law of the People's Republic of China
Article 4 provides that:
Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.
Company Law of the People's Republic of China
Article 16 stipulates:
Where a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the shareholders' meeting in accordance with the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits.
People's Republic of China (PRC) Accounting Standards for Business Enterprises
Article 25 provides that:
An enterprise shall, on the basis of going concern, confirm and measure according to the actual transactions and events and the provisions of the Accounting Standards for Business Enterprises-Basic Standards and other accounting standards, and prepare financial statements.