When reporting upon transactions in Treasury Shares in its financial statements, the company shall take into consideration the following: 1. Treasury Shares shall be recorded at cost price in a separate entry called “Treasury Shares” under shareholders’ assets. 2. An account called Treasury Shares’ reserve shall be entered into under shareholders’ assets. 3. Treasury Shares’ reserve shall be un-distributable during the period of holding Treasury Shares. 4. Profits and losses resulting from the sale of Treasury Shares shall be entered into the Treasury Shares’ reserve account. 5. In the event of that losses resulting from the sale of Treasury Shares exceed the balance of the Treasury Shares’ reserve account, the excess value of loss shall be deducted from the accounts of carried over profits, reserves and premium of shares respectively. In the event of achieving any profits resulting from the sale of Treasury Shares, a part of these profits which equals the losses previously deducted from the said accounts shall be retained to be re-added to these accounts, while the rest of the profits shall be listed in the Treasury Shares’ reserve account. 6. In the event of the liquidation of the Treasury Shares’ reserve account, the company may transfer the credit balance in the Treasury Shares’ reserve account to the general or voluntary reserves. 7. Bonus Shares distributions of Treasury Shares shall not be included in the revenues in the profit and loss account. 8. Bonus Shares shall not be added to the cost of Treasury Shares purchased. 9. The holdings of the portfolio of the Treasury Shares purchased shall be adjusted in accordance with the number of Bonus Shares acquired by the company, which shall result in the reduction of the cost of purchasing Treasury Shares. 10. If the company uses Treasury Shares for reducing capital it shall consider the following: a. The capital shall be reduced by the par value of Shares used for this purpose. b. If the cost of Treasury Shares is less than the par value, the credit balance shall be posted to the Treasury Shares reserve account, voluntary reserve or legal reserve. c. If the cost of Treasury Shares is more than the par value, it shall be amortized through the following accounts in the following order: Treasury Shares reserve, retained earnings, voluntary reserve, legal reserve and premium on Shares.