C. Formal requirements

Regulation:  DA 70. Four.3 Law 31/2022

The investment reserve must appear on the balance sheets with absolute separation and appropriate title and will be unavailable as long as the assets in which it was materialized must remain in the company.

The provision of this reserve will be considered as increase in equity for the purposes of the provisions of article 25.2 of the LIS with respect to the capitalisation reserve, and will not serve to meet the requirement of the to provide a reserve provided for in letter b) of article 25.1 of the LIS for the capitalisation reserve, nor provided for in article 105.3 of the LIS for the capitalisation reserve.