How do you calculate a control balance sheet? Examples and formula
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Fact-checked: October 1, 2026 · Swedish law
To calculate a control balance sheet, you first need an accurate, up-to-date balance sheet and then must assess which specific KBR adjustments are permitted under Chapter 25, Section 14 of the Swedish Companies Act. The result is first compared with half of the registered share capital and, later in the process, with the full amount of the registered share capital.
Basic formula
Equity = assets − liabilities and provisions
In practice, the company's accounting serves as the starting point. Then, permitted KBR adjustments are taken into account. The result is the equity that is compared with the relevant share capital threshold.
Step 1: Calculate the half-limit
Start with the registered share capital.
| Registered share capital | Half-limit | Full restoration |
|---|---|---|
| SEK 25,000 | SEK 12,500 | SEK 25,000 |
| SEK 50,000 | SEK 25,000 | SEK 50,000 |
| SEK 100,000 | SEK 50,000 | SEK 100,000 |
If there is reason to assume that the KBR-calculated equity is below the half-limit, the board must act in accordance with Chapter 25, Section 13 of the Swedish Companies Act.
Steps 2–5: From bookkeeping to KBR value
- Prepare an up-to-date balance sheet. Record all relevant business transactions, accruals, depreciation, write-downs, taxes, and other known items.
- Assess the assets. Identify whether Chapter 25, Section 14 permits a different valuation than the standard accounting.
- Assess liabilities and provisions. Ensure that all obligations are properly accounted for and that any adjustments are supported.
- Handle untaxed reserves. Allocate them between equity and deferred tax liabilities.
- Report KBR adjustments separately. Clearly show how you arrive at the control balance sheet from the standard balance sheet.
Example 1: Equity below the half-limit
Assume a limited company has SEK 25,000 in registered share capital. After the bookkeeping is updated and relevant items assessed, the KBR shows:
- Assets: SEK 210,000
- Liabilities and provisions: SEK 202,000
210,000 − 202,000 = SEK 8,000 in equity
The half-limit is SEK 12,500. The KBR therefore shows less than half of the registered share capital. The board must then proceed according to the rules for the first meeting for a control balance sheet.
Example 2: Permitted and documented KBR adjustment
Assume instead that the standard balance sheet shows SEK 8,000 in equity, but that the company has an asset where a documented valuation under Chapter 25, Section 14 permits a positive KBR adjustment of SEK 10,000. If no other adjustments are required, the illustrative KBR equity becomes:
8,000 + 10,000 = SEK 18,000
This is above the SEK 12,500 half-limit. The example shows why a KBR can yield a different result than the standard balance sheet. It does not, however, mean that all surplus values can be used automatically—the adjustment must be supported by law and generally accepted accounting principles.
Read our in-depth guide on valuation.
How are untaxed reserves calculated?
According to the Swedish Companies Act, untaxed reserves must be divided into equity and deferred tax liabilities. For example, if the company has tax allocation reserves or other untaxed reserves, you should not add the entire amount directly to equity.
The exact tax calculation depends on the current tax rate and the nature of the item. Document the calculation and reconcile it against applicable accounting and tax regulations.
What should you compare against after the first meeting for a control balance sheet?
If the process continues to a second meeting for a control balance sheet, it is not enough for the capital to have recovered to, for example, SEK 13,000 in a company with SEK 25,000 in share capital. In that case, to eliminate the grounds for liquidation, the new KBR must show that the equity amounts to at least SEK 25,000, i.e., the full registered share capital.
See the timeline in How is a control balance sheet performed?.
Common calculation errors
- Using the minimum capital stipulated in the law instead of the company's actual registered share capital.
- Using old bookkeeping figures without accruals and reconciliation.
- Writing up assets without support and documentation.
- Forgetting doubtful debts or provisions.
- Counting entire untaxed reserves as equity.
- Forgetting that KBR adjustments must be reported separately.
- Believing that capital only needs to be restored to half of the share capital at the second meeting for a control balance sheet.
Control Balance Sheet Template – Without Auditor (Excel) costs SEK 49 and is intended as a working document for private limited companies without an elected auditor. Verify every valuation and item against the company's actual situation.
