II. Functioning of accounts
Class 2. Fixed assets

27. Other financial fixed assets


Subdivisions of accounts 274 " Loans " , 275 " Deposits and sureties paid " and 276 " Other long-term receivables " are used to identify the portion of these loans and receivables that will be recovered in the long, medium and short term, as well as the accrued interest.

Securities conferring a right of ownership pledged or temporarily blocked for more than one year are recorded in account 271 " Long-term securities other than portfolio investments " .

Account 279 " Remaining payments on unpaid long-term securities " is credited with the amount of remaining payments on unpaid long-term securities, by debiting account 271.

In the case of a disposal, account 271 and account 272 " Long-term debt securities " are credited by debiting account 675 " Book value of assets sold " for the book value of the securities disposed of. At the same time, account 462 " Receivables from sale of fixed assets " or a cash account is debited by crediting account 775 " Income from sale of assets ".

When long-term receivables are acquired at a price different from their nominal value, the latter may nevertheless be recorded in the relevant subdivision of account 27, with the difference between the nominal value and the price being recorded in an accrual account in accordance with the contractual terms.

Companies that purchase their own shares record them in account 2771 " Own shares " .

Own shares purchased expressly for cancellation are recorded in account 2772 " Own shares in the process of cancellation " . Since the capital reduction takes place at the same time as the transfer of ownership of the shares from the shareholders to the company, this entry is made as a reminder. In any case, these shares will have disappeared from the assets at the end of the financial year. The cancellation is equivalent to a partial division of the company's assets in favor of the sellers of the shares bought back. If the buy-back price is lower than the total nominal value of the shares bought back, the amount of the capital reduction is nevertheless equal to this total nominal value since the shares bought back are cancelled. The difference is recorded in an account similar to that for share and contribution premiums. If the buy-back price is higher than the nominal value of the shares bought back, the amount of the capital reduction is equal to the nominal value of the shares bought back and the surplus is allocated to the distributable reserve.


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