Is the statutory surplus reserve accrued after making up the losses?

The so-called surplus reserve means that at the end of each year, enterprises withdraw and accumulate certain funds from net profit in accordance with relevant regulations for future use. Is the statutory surplus reserve accrued after 1. years? The surplus reserve is accrued according to the profit of this year, so it is accrued at the end of the fiscal year. The profit of this year after carrying forward the profit and loss is used to make up for the loss first, and then the income tax is extracted. After income tax, the statutory surplus reserve shall be drawn, and the dividends of preferred shares and common shares shall be distributed. Finally, the undistributed profits are transferred to undistributed profits. 2. What is the purpose of statutory surplus reserve? (1) The annual losses incurred by loss-making enterprises shall be made up by the enterprises themselves. There are three ways to make up for it: (1) pre-tax profit of the previous year. (2) After-tax profits in the following years. (3) surplus reserve fund. (2) After the enterprise has expanded its business scale or increased its capital, the remaining capital reserve fund shall not be less than 25% of the registered capital. (3) Distribution of dividends In principle, an enterprise shall not distribute dividends if it has no profit in that year. If dividends are distributed by surplus reserve in order to maintain the reputation of the enterprise, the following conditions must be met: (1) After the surplus reserve makes up for the losses, there is still a balance in the provident fund. (2) When distributing dividends from surplus reserves, the dividend yield should not be too high, and should not exceed 6% of the face value of the stock. (3) After distributing dividends, the statutory surplus reserve fund shall not be less than 25% of the registered capital. The public welfare fund extracted by property management enterprises is mainly used for the collective welfare of enterprise employees. Such as: building staff quarters, kindergartens, nurseries, etc. Three. Arbitrary surplus reserve ratio refers to the reserve fund drawn by joint-stock enterprises from the profits that can be distributed to investors according to the articles of association or resolutions of shareholders' meeting, and the amount and use of the withdrawal are determined by the company itself. Relevant laws and regulations: Paragraph 3 of Article 167 of the Company Law stipulates: "After the company withdraws the statutory reserve fund from the after-tax profits, it may withdraw any reserve fund upon the resolution of the shareholders' meeting. "Whether to withdraw the provident fund and the proportion of withdrawal shall be decided by the shareholders' meeting according to the needs of the company's development and the surplus situation, and there is no mandatory law. The surplus reserves extracted by enterprises can be used to make up losses, expand production and operation, increase capital or issue new shares. I hope the above contents are helpful.

Legal objectivity:

Article 166 of the Company Law When distributing the after-tax profits of the current year, the company shall withdraw 10% of the profits and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn. If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph. After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting. After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held. If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company. The company's shares held by the company shall not be distributed.