For over a century, the conspiratorially owned and operated Federal support Banking law has controlled this nation's money provide and credit. This institution and its economic policies are an enigma to most government officials and American citizens. To understand the Federal support Bank, we have to first look at how it operates. We can then understand why our founding fathers were opposed to such a law for the United States of America.

Reserve

The Federal support is what is known as a central bank. This bank is not regulated by the United States government. It creates the nation's money supply, loans it back to the government at interest, and regulates interest rates on the money it loaned out.

Reserve

The Federal maintain Bank - What it is and What You Need to Know

The Federal maintain Bank - What it is and What You Need to Know

However, the Federal Reserve, also ordinarily called "the Fed," does not loan out money held in its vaults. Instead, it creates new money for circulation by adding toll to an account. Thus, they are creating new money that never existed before.

Body

Reserve

How much money can be created out of nothing? The Fed is only required to hold ten percent in reserves, and can loan out ninety percent. One of the Federal Reserve's publications states, "Of course, they (the banks) do not unquestionably pay out loans from the money received from deposits. What they do when they make loans is to accept promissory notes (money) for toll to the borrowers account."

Actual currency is relative to the whole of new loans in demand. In short our law is based on debt. New money cannot be created unless banks issue new loans.

The Federal support is a underground bank. It loans America it's currency at interest like any other bank, and process works like this. The federal government needs to make more money. It has the Federal support print support notes (money) worth a set value. The federal government then prints treasury bonds, which is basically a promissory note to pay back the loan of the currency at interest. In straightforward terms our government is in debt to the Federal support as soon as the money is created.

If the government is in debt to the Fed, who makes the money, and the only way to get out debt is make more money, and the citizen who make the money are charging interest; how would the debt ever be paid off?

It doesn't.

As stated by the great scientist and inventor of the light bulb, Thomas Edison wrote, "If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also. The dissimilarity between the bond and the bill is that the bond lets money brokers accumulate twice the whole of the bond and an additional 20%, whereas the currency pays nobody but those who conduce directly in some useful way. It is absurd to say that our country can issue million in bonds and not million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people."

Our founding fathers were very aware of this problem and fought it from the time of the colonies. As Benjamin Franklin states in his autobiography explaining the Currency Act by the Bank of England in 1764, "The colonies would gladly borne itsybitsy tax on tea and other matters had not been that England took away from the colonies their money, which created unemployment and dissatisfaction... The inability of the colonists to get power to issue their own money out of the hands of King George Iii and the international bankers was the Prime imagine for Revolutionary War."

Many other founding fathers agreed that our country should issue and regulate its own money. At the Constitutional institution in 1787, Thomas Jefferson stated, "If the American citizen were ever allow underground banks to control the issue on their currency first by inflation, then by deflation, the banks and their corporations which grow up around them, will deprive the citizen of all property until their children wake slaves on the continent their fathers conquered... I sincerely believe that banking institutions are more hazardous than standing armies. The issuing power should be taken from the banks and restored to the citizen to whom it properly belongs."

Also, James Madison said, "History records that the money changers have used every form of abuse, intrigue, deceit and violent means inherent to articulate their control over governments by controlling money and it's issuance."

Throughout American history; there has been a battle to keep banking interests from controlling this nation's money supply. A few central banks have come and gone while our Nation's history.

Andrew Jackson recognized the connection between the international banking interests and central banks. In his inaugural address he states, "It is not our own citizens to receive the bounty of our government, over 8 million in stock of this bank is held by foreigners...controlling our currency, raising our dependency...and holding thousands of our citizens in dependence would be more formidable than a troops power of an enemy."

Andrew Jackson fought throughout his presidency to take off the central bank that preceded the Federal Reserve. By the end of his term, he had finished the total extraction of central banks in America. Of policy the battle waged on straight through the decades.

Our country remained mostly free of the banking interests until 1913, when the Federal support act was passed in to law. In actuality, the history of the Federal support goes back before 1913, to the economic panic of 1907. The panic of 1907 was the first major economic crisis; stocks dropped and banks collapsed in mass. The knowledge of "special interests" manipulating the store was unabridged as stated by Frederick Allen in Life magazine, "The Morgan interests took advantage, to precipitate the panic, guiding it shrewdly."

Even though, a congressional hearing in to the panic of 1907, led by Senator Aldrich was convened. Senator Aldrich closing was that other central bank was needed to keep panic of 1907 from happening again, "This trouble could be averted if we appointed a committee of six or seven group intelligent men like J.P. Morgan to deal with the affairs of this country". After this hearing a underground meeting between banking interest and senator Aldrich took place on a small island of coast of Georgia called Jekyll Island. That meeting was described by Frank Vanderlip in February 9, 1935 in the Saturday Evening Post, "I was secretive, unquestionably as additional as any conspirator. Discovery, we knew, plainly must not happen, or else, all our time and attempt would be wasted. If it were to be exposed that our particular group had gotten together and written a banking bill. That bill would have no opening of duct by Congress."

The bill that was written was called the Aldrich Plan. Many knew this was just a economic takeover of the country as quoted by Senator Charles Lindbergh, "This act establishes the most huge trust on earth. When the president signs this bill the invisible government by the monetary power will be legalized...The worst legislation crime of the ages is perpetuated in this banking bill...The Aldrich Plan is the Wall street plan. It means other panic, if necessary, to intimidate the people".

Once Woodrow Wilson became president, the Aldrich Plan was rewritten and given other name; The Glass-Owen bill. This new bill remained practically same to its previous version. Congress appointed an Ohio lawyer to explore the bill. He testified in front of the committee saying, "The bill grants just what Wall street and the big banks for twenty-five years been striving for, underground instead of group control of currency. The Glass-Owen bill does this as fully as the Aldrich bill. Both measures rob the government and the people".

Even with major congressional opposition, the Federal support Act was passed on Christmas Eve when majority of congress was at home for the holidays. President Woodrow Wilson swiftly signed it into law.

With the passing of this law, many citizen were outraged from politicians to scientists. The Senate Chairman on Banking and Currency stated, "A super-state controlled by international bankers and industrialists is being set up here, acting together to enslave the world for their own interests...The Fed has usurped the government".

After Woodrow Wilson left office, later despaired by his role in passing the Federal support Act, writes, "Our great industrial nation is controlled by its law of credit. Our law is conspiratorially concentrated in the hands of a few men...By very reasoned their limitations, chill and cheek and destroy genuine economic freedom. We have come to be one of the worst ruled, one of the most fully controlled and dominated governments in the civilized world. No longer a government by free opinion. No longer a government of conviction and vote of the majority, but a government by the opinions and duress of small group of dominate men."

On March 4, 1933, while Franklin D. Roosevelt's inaugural address he said, "Practices of the scrupulous money changers stand indicted in the court of group opinion, rejected by the hearts and minds of men." Shortly, after his election, President Roosevelt signed the Gold Seizure Act which by law forced Americans to turn over all but a small whole of gold in their rights to the Federal Reserve. All the American gold, that totaled 700 million ounces of gold (70% of world's gold) was rounded up and located in Fort Knox.

By the 1950s the gold in Fort Knox was given regulation control to the Federal support Bank. Until this time there had been an audit on the gold every year, but the last audit done was by Eisenhower in 1954. In 1982, President Ronald Reagan appointed the Gold Commission to determine how much gold was owned by the United States. The closing from this commission was that United States Treasury owned no gold and that it was owned by the Federal Reserve.

In 1985, President Reagan created the Grace Commission to explore where the revenue Tax money was spent by the government each year. The commission closing was that 100% of revenue taxes were absorbed by the interests on the debt owed to the Federal Reserve.

At the end of 2008, our country fell in to other depression, which is the Federal Reserve's job to prevent. Their solution was to print more money and bailout the banking corporations, thus putting America and its citizens in to greater debt while a time of depression.

Since the creation of the Federal Reserve, it has maintained total control over America's currency and economics. The national debt in time the Federal support was passed in to law was ,912,499,269. After 100 years of the Federal support control, the national debt is ,296,232,673,031. This is an huge 42,200% growth in the national debt, and most of the debt was incurred with no regulation from the United States government at all.

As we move toward the 2010 Congressional elections, it is important to remember that both the Democrat and Republican Parties have led us to the point we are today. Only the Libertarian Party has consistently located candidates on the ballot that are dedicated to ending the Federal Reserve's stranglehold on the American People.

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Reserve

The Federal preserve Bank is not part of the Us Government. It is certainly a conspiratorially owned corporation and international bank that was created by Congress in 1913. The tube of the 16th amendment was passed rather dishonestly, and agreeing to some, illegally. Furthermore it was given the exclusive possession to "print money" for the U.S. Government by Congress, during the Christmas break in 1913 when most of the representatives were on vacation.

The Federal support Bank - What Is It Really?

The Federal support Bank - What Is It Really?

Before the creation of the Federal preserve the power and accountability to print our nation's money was done by the Congress of the United States. Sadly since the time when the Federal preserve was given the power to run the printing press, the people of America have continually been charged interest on every dollar ever printed. This interest does not go to the Federal Government to help Government programs or pay down national debt. It goes directly to the "cartel banking families" that own the Federal Reserve.

Furthermore the Federal preserve is responsible for the continuous loss of purchasing power that the dollar has suffered for decades which was done by printing excess money. Since 1971 the Us dollar has lost the backing of gold, now it's just created out of thin air. This excess money when added to the Americas money contribute "waters it down" making the total value of the currency weaker so you need more of it to buy something, this is called inflation. Here is the real kicker, the total sum of the United States national debt in all actuality, is the superior interest still owed to the Federal preserve that the American people get stuck paying.

Reserve

So what does the Federal preserve do? Well their legal role other than money printing is also to contribute a means that will control the number of money that enters the economy. It is a fine balance that borders between an excess number of currency creating inflation and not adequate creating a recession. The Fed "when acting responsibly" provides the counter balance to keep inflation and retreat in check.

Reserve

The Federal preserve is a secretive collection of inexpressive banks that have Federal authority. They have no government control or oversight and are accountable to no one for their actions. They pretty much run in inexpressive keeping the money contribute flowing steadily between the exceptionally rich, financial markets, banks and consumers. This is done while they react to both national and international political pressures. The Federal Reserve's meetings are all the time held in inexpressive where decisions are made without any face response. These decisions ultimately and directly will influence the economic welfare of each someone in the nation as a whole.

The Fed also incorporates other mechanisms or tools that can be put to use when necessary. One of the tools that will generate a great deal of attention has to do with the interest rates for banks in single commercial banks. News of the Federal preserve changing its interest rates all the time seems confusing even deceptive to many. However these rates will influence commercial banks which pay the Fed's rate to borrow money thus may or may not directly influence the consumer.

In overview America's biggest problem is certainly the Federal preserve itself. Our congress nearly 100 years ago sold America out by handing over great powers to the corrupt international banking elite, which in-turn have only compromised the well-being of our entire economy. It is behalf and power first that drive these "international thieves". The banking elite are an international group of bankers from several countries and none of them are from America. Therefore they have zero loyalty to American interests nor the American way of life. It is nationalism itself that hinders their enterprise interests.

It was many years ago when one of our founding forefathers certainly warned us about the dangers of inexpressive banks arrival into power. But did we listen?

"If the American people ever allow inexpressive banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up nearby them, will deprive the people of their asset until their children will wake up homeless on the continent their fathers conquered." - Thomas Jefferson

Apparently Not!

Tom Genot

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How to reserve Banquet Halls

How to reserve Banquet Halls

Reserve

When selecting a place for a big event, banquet halls tend to be a favorite option. While they range in size and services available, all want the space to be reserved well in advance. Before production a final decision, it is prominent to tour several local facilities to see what is out there and to get an idea of which one will be best. Visiting in person is all the time better than just finding at photos or taking person else's word for it. Once the final decision has been made, it is time to set up the reservation.

Check the Date Availability

Reserve

Remember that there are a lot of separate people planning their events and weddings, and banquet halls tend to fill up their calendars quickly. As soon as the date has been decided, make a trip down to the location and withhold the time. Sometimes the date is not available. If this is the exquisite location for the event, consider having a backup date in mind just in case.

Make Some Decisions

Different banquet halls offer separate services. Some will come with full service catering while others will allow an surface business to deal with the food. Because this is an prominent part of the event, find out this data as soon as possible. Most customers do not need to select a menu right away, but it does help to have some idea of the incredible setting. For example, will everyone need to be served by the staff or will a buffet be set up somewhere in the room? Many banquet halls have event planners that will work with a customer to make sure that these prominent decisions are taken into consideration.

Put Down a Deposit

In order to get one of the banquet halls for a sure date a time, a deposit is required. It may be a percentage of the ample cost of the event or it may be a set figure. Either way, this money must be handed over at the time of the reservation. Be sure to read any and all paperwork that comes with the deposit. In some cases, after a sure date, the deposit is no longer refundable. This means that even if the event is not going to take place, the customer forfeits the money.

Once the process is complete, it is time to start planning out the other aspects of the event. Make sure that as things continue, the venue coordinator is kept up to date with any changes or issues that arise. This keeps the lines of transportation open and allows everyone to work together for a common goal. If there are any questions or problems, don't hesitate to experience the venue coordinator.

Reserve

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The "Federal" "Reserve" literally Owns everything (or - Why Am I in Debt?)

Reserve

Hello again! Long time, no see! This one will probably be short compared to my others, plainly because I'm kind of going to go in a new direction with this thing (and my life), and I'm not entirely sure where to start...

Reserve

The "Federal" "Reserve" literally Owns everything (or - Why Am I in Debt?)

First let me tell you fast why "Federal" and "Reserve" are in quotes in the title of this piece. This is because "Federal," when used alone, essentially means "of the government." "Reserve," when used in this manner, is supposed to mean "we have backup funds." The funny thing is, when you put them together, as in "Federal Reserve," neither of these things are true. "Federal" admittedly means "privatized," and "Reserve" admittedly means "oops, we forgot to tell you that we don't admittedly have any reserves." I kid you not. Read on to find out what I mean...

Are you in debt? If you are, you'll never escape it. If you're not, good for you, but don't worry, you will be soon. Why is that? You may or may not have a job at this point, but even if you do, you're probably not development enough, or not development what you feel you deserve... Why is that? Are you lazy? Do you not work your full 100 hours a week? Well, get back on the wheel, hamster; sleep is for the weak! Some habitancy even have Two jobs, and they're Still in debt. Why Is That???

Ok, you admittedly want to know? It's because of Obama!... Right? You voted an illegal immigrant (Bahahaha) And a black man (you sure about that?) into office. He wants his reparations money for the work his ancestors did long before he was born, and he's taking it right out of Your pocket and sending it home to his Mexican family! Right? Hmm... Wait a minute... Wasn't he a community activist or something for poor habitancy before he got to be all high and mighty? That doesn't make much sense... Well what is it, then? Let's think... Maybe it's God's fault? God put you in that Walmart grocery group and Forced your boss to pay you .25 an hour just to smite your unholy face, right? That's got to be it. If it's not your fault, and it's not Obama's, it must be God. But wait a second... Isn't God that guy that preaches heaven on earth, and goodwill toward people, and all that crap? That doesn't seem a likely culprit... Damn, what could it be??? Ohhhhh, That'S right, I remember now!! (Keep reading.)

Well I'm sure you've been waiting with baited breath to find out who's money I burned (literally, burned) (video of this in "On Greed"), so I'll tell you: it's the Fed's (that is, the Federal Reserve's.) But you probably already knew that if you clicked on the links in Greed Part 1. Every dollar you have, have ever made, or will ever make - indeed, every theoretical or real-life American dollar in existence - is theirs. How is that, you ask? Well I'm going to clarify what exiguous I know of it in the simplest terms I can contrive.

Quick history lesson: (very quick, I promise!) The Federal withhold was created in 1913 straight through a law signed by President Woodrow Wilson, the Federal withhold Act. This created a "central banking authority" for the United States, so that in times of financial crisis, there would still be sufficient money in withhold to run the government. Also in 1913, the 16th amendment to the U.S. Constitution was created, allowing Congress the ability to levy (establish) and derive taxes on income (your paycheck). In other words, habitancy were no longer working just for their own benefit, but also the advantage of the government, which you would think would be a good thing, since everyone was now working partly toward the tasteless interest.

Unfortunately, our income taxes are not regulated or collected by Congress, as the 16th amendment states, but by the Fed. Also unfortunately, the Fed has chosen to hoard these collections. And instead of just giving our government money to work with, they loan it back to us with interest. So now when President Obama (Bush, Clinton, Bush again, etc... All the way back to Woodrow Wilson) needs money for, you know, roads and stuff, they send the invite to the Fed. The Fed calls the treasury group and says "print out X estimate of money." The treasury prints out the money, sends it to the Fed, who loans it to the government, again, I say, with interest.

So any money the government spends - it gets from the Fed. The Fed decides how much money is printed, how much is in circulation, and exactly what that money is worth, by controlling inflation and deflation. And you understanding Walmart was greedy... (Well, they are, but they're on a level infinitely below that of the Fed.) Money isn't real because the Fed keeps having the U.S. Treasury originate it, but they have nothing principal (gold, for example) to back it up. They just trick habitancy into believing that their dollar is admittedly worth something, and if you took it up to their vault, you could get something tangible for it. Haha, good luck with that.

I'm kind of stealing off of man else's article here... Oh, my; it appears more habitancy read that article than the Fed anticipated... It has been removed from the website! Doesn't surprise me. It Was here. It isn't now (I'm sure due to the sway of the Fed), but if you look at your crusade bar, it tells you what it was about, and it's admittedly no question - I know what it said. The guy who wrote that article said that when you go to the bank to deposit your check, you know that when that money is added to your account, there isn't some machine or some laborer in the vault that takes a pile of money out of the "bank's money" and puts it in your pile. They plainly make an entry in their computer that X firm owes you X dollars, and that they'll pay you whenever the bank feels like it benefits them (usually 2 firm days, long sufficient for the bank to spend some of that money into bigger banks). Can you get the cash for it? Sure, in 2 firm days or so, but then what do you do with that cash?

You use it to pay bills (taxed), to buy your house some food (taxed), to put gas in your car (Extremely taxed), etc, etc. Maybe, if you've been recovery long enough, you pick up a new Tv or improve your house or something... plainly put: you spend it. And some of it goes to state taxes (This Is Good - this money comes back to you) and some of it goes to federal taxes, aka the Fed. (Some of these taxes are applied by the Fed before you even look at the product, as we import most of our goods.) Not the federal government, but the Federal withhold Bank - who then loans it back to the government (interest!), who gives it back to you, who gives it back to the Fed, and so on and so forth.

So you can't win. The government, and you, and I will all the time be in debt to the Fed, which means the Fed owns every theoretical or real-life American dollar in existence. Get it? You're paying to be enslaved. You're working for their money! All they do is sit back and watch the greenbacks roll in! Are you getting pissed off yet? Probably not, due to the estimate of brainwashing the Fed puts on Tv every day - I don't watch much, and if you think about it, habitancy who don't watch much Tv are probably the ones who understand this the easiest.

Let's keep going: So the Fed not only steals our money (which should go to Congress, remember) and loans it back to us, with interest, to make sure we stay in debt, but they also regulate how much it's worth straight through inflation and deflation. They could tell the treasury group to print out a gazillion dollars, loan it to the government, then say it's worth 15 gazillion dollars, and instead of having a gazillion dollars to spend on ourselves, we owe them 15 gazillion dollars (well, maybe 20 after you tack on the interest). What The Hell?

Money isn't real. All we have is each other. You have no money; I have no money; the government has no money. The Fed has All of the money. Literally. And they have nothing principal with which to back it up. It's admittedly just a bunch of ones and zeros in their computer database. I'm not development this up. The Fed admittedly Owns Everything.

Stay tuned, because next time I'm going to tell you what I've done to start whittling away at their unfathomably large bank accounts (that don't admittedly exist), and what You can do, too. What I've done is rather impractical for the midpoint person, but there are admittedly some things you can do to remain in community and still give them a exiguous taste of their own medicine.

I'll even give you a exiguous head start - this is what your next federal tax form should look like when you send it to them:

Hey, the Irs can't hunt us All down, right? (Yes, I received a reimbursement on my taxes - before you ask me what I'm whining about, which I don't think I can clarify any more clearly than I did above - I also put in Extra money, like I all the time do, because I'm horrible at recovery my own money.)

I leave you with a quote, spoken by none other than the man who screwed us all in the first place, after he signed this insanity into law:

"We have come to be one of the worst ruled, one of the most thoroughly controlled and dominated governments in the civilized world. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the understanding and duress of a small group of dominate men. I have unwittingly betrayed my country." -President Woodrow Wilson, 1916

P.S. Please, for the love of God, Share this with your fellow Americans. They have a right to know. If they're not big on reading, Talk to them about it. Please.

The "Federal" "Reserve" literally Owns everything (or - Why Am I in Debt?)

Reserve

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Reserves

dissimilarity in the middle of Provisions And Reserves

1. It is created by debiting the profit and loss appropriation account.

Reserve

2. It is created to meet an unknown liability, or to strengthen the financial position of the enterprise or for equalization of dividends etc.

Reserve

3. A hold is created only when there is profit in the business.

4. It can be distributed among shareholders as dividend.

5. The hold is created without taking into notice the actual number required except in the case of redemption of debentures when a exact sum is set aside.

6. Creation of hold depends upon the financial course of the enterprise and discretion of its management.

7. It is ordinarily shown on the liability side of the balance sheet as it is not a exact reserve.

Provisions

1. It is created by debiting the profit and loss account.

2. It is created to meet a known liability or a exact contingency, e.g.. Provision for bad and doubtful debts, or provision for depreciation etc.

3. A provision is created irrespective of either there is profit or loss in the business.

4. It is not ready for distribution as dividend among shareholders.

5. A provision is made for a exact number and, therefore, a exact sum is set aside every year to meet the known contingency.

6. Production of a provision is a must to meet known liability or contingency.

7. The provision is generally shown on the assets side of the balance sheet.

Distinction in the middle of normal hold and exact reserve

General reserve

1. It is created for a exact purpose.

2. It is utilized for that exact purpose, for which it was created.

3. either profit or no profits, it must be created.

4. It is critical to create in order to ascertain profit.

5. It is shown on the debit side of profit and loss account.

6. Net profits are reduced because of it.

Specific Reserve

1. It is created not for any exact purpose but for meeting hereafter contingencies.

2. It can be utilized for meeting any hereafter loss.

3. It is created only when there are adequate profit.

4. They are created only when there are profits i.e. They depend upon profits.

5. It is shown on the debit side of profit and loss appropriation account.

6. Only distributable profits are reduced because of it.

Reserve Fund

Profit set aside and used in the enterprise is a reserve. But profit set aside and invested face the enterprise is a hold fund. Thus, the use of the term 'fund' indicates
investment of hold face the business.

Sinking Fund

A sinking fund is a fund built up by yearly contributions. The contributions are invested face the enterprise in readily realizable securities. Interest received on investments is reinvested in the same securities.

A sinking fund may be (i) for replacement of fixed assets or (ii) for the redemption of debentures or reimbursement of loan. A sinking fund for the replacement of a fixed asset is a provision. But a sinking fund for redemption of debentures or reimbursement of loan is an appropriation of profits. A sinking fund represents number invested face the business.

Distinction in the middle of hold fund and sinking fund

Reserve fund

1. Investments are not for exact period.

2. It is created always out of divisible profits.

3. Interest received on investments representing hold fund may not be re-invested.

Sinking fund

1. Investments are for a exact period.

2. It is not always out of divisible profit e.g. Sinking fund for replacement of asset is provision for depreciation, it must be created even if there are no profits.

3. In case of sinking fund, interest is always re-invested.

dissimilarity in the middle of Provisions And Reserves

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How incommunicable sustain is created?

incommunicable Reserves

Reserve

A incommunicable sustain is created by the following methods:

1. By under valuation of assets much below their cost or shop value, such as investment, stock in trade, etc.

Reserve

incommunicable Reserves

2. By not writing up the value of an asset, the price of which has constantly gone up.

3. By creating immoderate sustain for bad and doubtful debts or discount on sundry debtors.

4. By providing, immoderate depreciation on fixed assets.

5. By writing down goodwill to a nominal value.

6. By omitting some of the assets altogether from balance sheet.

7. By changing capital expenditure to income account and thus showing the value of assets to be less than their actual value.

8. By overvaluing the liabilities.

9. By the inclusion of fictitious liabilities.

10. By showing contingent liabilities as actual liabilities.

Object of creating incommunicable reserve

1. incommunicable reserves progress the financial position of a concern, losses can be made good without disclosing their occurrence to the shareholders and others. This helps the concern to remain financially strong in spite of a duration of adversity.

2. It may best utilized for equalization of dividends, thereby maintaining the financial stability of the company.

3. The profits which would have been utilized for the cost of dividend remain in the enterprise and growth the working capital of the company.

4. incommunicable sustain is created to sustain facts of the progress of the enterprise from trade competitors. If the true earning position of the enterprise is shown it is inherent that more rival companies may come into the field and compete with it, thus bringing down
its profits.

Objections to incommunicable reserves

1. balance sheet does not exhibit true and fair view of the financial affairs of the concern if incommunicable sustain is created and maintained. At the same time, the behalf and loss account also does not give the precise results since immoderate provision for depreciation or sustain may be made for its creation.

2. incommunicable reserves may be utilized by the supervision to conceal their frailness in the term of mismanagement. It may conceal losses arising out of bad or careless supervision or even reckless speculation.

3. If fixed assets are undervalued for the purpose of creating incommunicable reserve, and if there is a fire, the enterprise will not be able to claim the full value of the assets because the insurance enterprise will pay according to the book value of the asset destroyed or damaged and hence cause a loss to the company. .

4. By creating incommunicable reserves, and thus lowering the dividend, the directors may indulge in speculation in the shares of the company.

5. The shareholders of the enterprise suffer a loss due to less dividends on account of the creation of incommunicable reserves.

6. Due to the creation of incommunicable reserves, the value of shares in the shop falls.

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