Capital reserve--share premium
2. Retained earnings: surplus reserve
Profit distribution--undistributed profits
Gains and losses recognized directly in owners' equity --- other comprehensive income
A. Profit refers to the income generated from non-daily activities of the enterprise, which will lead to the increase of owner's equity and the inflow of economic benefits that has nothing to do with the capital invested by the owner. Gains include two types: 1. Gains that form current profits and losses, such as net gains from the disposal of fixed assets; 2. Gains that are directly included in owners' equity.
Purpose: Overlord