Current location - Recipe Complete Network - Catering franchise - How to account for the influence of joint venture capital increase and share expansion on the equity of investment enterprises?
How to account for the influence of joint venture capital increase and share expansion on the equity of investment enterprises?

a: article 13 of the accounting standards for enterprises No.2-long-term equity investment (2116) stipulates that an investment enterprise shall adjust the book value of long-term equity investment and include it in the owner's equity for other changes in the owner's equity of the invested entity except the net profit and loss. The investment enterprise mentioned in the question changes the owner's equity due to the joint venture's capital increase and share expansion, and the equity ratio decreases. At this time, the difference between the changed investment ratio and the joint venture's share of net assets should be included in the "capital reserve" account. The accounting treatment is as follows: borrowing: long-term equity investment-other changes in equity: capital reserve-other changes in equity or borrowing: capital reserve-other changes in equity: long-term equity investment-other changes in equity.