How it’s built
- From the official gazette: the legal reserve rose from ¥6m to ¥91m, reaching the legal cap of a quarter of the ¥365m share capital.
- Japanese law requires 10% of each dividend to go into this reserve until the cap is reached.
What we assumed
Nothing. The figure is used as published.
Sanity check
Consistent with the ¥2,989m gap in retained earnings that year being a cash dividend rather than an accounting reclassification.
Where it comes from
Our calculation from other figures in the trainer’s notes.