Owners' equity includes paid-in capital, capital reserve and retained earnings, among which retained earnings include surplus reserve and undistributed profits. Paid-in capital and capital reserve generally come from the capital investment of enterprises.
Retained income comes from the capital appreciation generated by enterprise profits, that is to say, paid-in capital and capital reserve have nothing to do with the production and operation of the enterprise itself, while retained income is the embodiment of the production and operation performance of the enterprise.
Project capital refers to the amount of investment subscribed by investors in the total investment of investment projects. From the comparison between the two, we can see that the scope of owner's equity includes project capital.
Paid-in capital and capital reserve in owners' equity belong to project capital, while retained earnings in owners' equity generally do not belong to the category of project capital, but retained earnings in special circumstances may also constitute project capital.
Extended data:
Composition of self-owned funds:
Due to the different forms of ownership of means of production and financial management system, enterprises have different channels to obtain their own funds.
The self-owned capital composition of enterprises owned by the whole people: part of it comes from state financial allocation and free transfer of fixed assets; Part of it comes from the internal accumulation of enterprises, that is, in accordance with state regulations, various special funds are precipitated from costs and after-tax profits.
In addition, it also comes from fixed liabilities, that is, part of the funds that enterprises can often use according to the relevant systems and settlement procedures.
For example, taxes payable, profits payable, accrued expenses, and the part that can be used frequently in advance according to the degree of completion. Fixed liabilities participate in turnover as the enterprise's own liquidity in financial treatment.
Composition of self-owned funds of collective enterprises: the self-owned funds of collective enterprises mainly come from the special funds such as the working people's investment in shares and the accumulated provident fund and public welfare fund within the enterprise.
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