Due to exchange rate changes, the capital increase of imported equipment exceeds the approved capital increase. Can the excess be included in the capital reserve?

The difference caused by exchange rate changes cannot be included in capital reserve, but should be included in exchange gains and losses.

However, according to the Accounting Standards for Trade Associations or Accounting Standards for Small Enterprises, the acceptance of monetary or non-monetary capital increase in foreign currencies will not generate exchange differences, and should be accounted at the spot exchange rate on the trading day, and the average exchange rate approved, agreed in the contract or traded in the current period shall not be used.