Entries of incentive amortization of parent company's equity to subsidiary company

The accounting entries of equity incentive are generally divided into the following two steps.

1. Please enter the following before exercising your rights.

Borrow: management fee,

Loan: capital reserve-other capital reserve.

2. During actual exercise, make the following records.

Debit: bank deposit,

Capital reserve-other capital reserve.

Loan: share capital,

Capital reserve-capital premium.