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Article 10
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The shareholders' equity account categories on the balance sheet, content thereof, and matters to be noted are as follows:
- "Capital stock" means the capital invested in the Bills Finance Company by shareholders and applied for registration with the competent authority for company registrations. The type of capital stock, par value per share, number of authorized shares, number of issued shares, and special terms shall be indicated. If convertible preferred stock and overseas depositary receipts are issued, the place of issue, issuance and conversion methods, converted amount and special terms shall be disclosed.
- "Capital reserves" means the premiums generated through capital stock transactions between the Bills Finance Company and shareholders, usually including premium over shares issued above par value, donations from shareholders, and such others as generated under generally accepted accounting principles. Where the Bills Finance Company capitalizes its capital reserves in a given year, its shall make footnote disclosure of such in the current-period financial statements. Capital reserves shall be listed separately according to their nature, and circumstances relating to any limits on the utilization thereof shall be disclosed in footnotes.
- "Retained earnings" (or "accumulated deficit") means the equity resulting from operating activities, including legal reserve, special reserve, and unappropriated earnings (or deficit to be offset), etc.
- "Legal reserve" means the fixed-percentage reserve required to be allocated by Article 34 of the Bills Financing Act.
- "Special reserve" means the reserve allocated from earnings in accordance with relevant laws and regulations, contracts, articles of incorporation, or resolutions of shareholders meetings.
- "Unappropriated earnings" (or "deficit to be offset") means the undistributed and unappropriated earnings (a deficit to be offset is the loss not yet recouped).
- Distribution of earnings or offsetting of deficit shall not be accounted for until approved by the shareholders meeting. However, when an earnings distribution or offsetting of deficit has been proposed, such shall be disclosed in footnotes to the current financial statements.
- "Other shareholders' equity items" means other items resulting in increases or decreases to shareholders' equity, usually including unrealized losses on market value decline of long-term equity investments, net losses not recognized as pension costs, translation adjustments, treasury stock, etc.
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