Valuation reserve

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Valuation reserve

An allowance to provide for changes in the value of a company's assets, such as depreciation.

Valuation Reserve

A charge against a company's earnings set aside to account for changes in the value of a company's assets. These changes are normally due to depreciation, but also may come from bad debt.
References in periodicals archive ?
government and government-related securities and therefore no impact on insurers' financial reporting of risk-based capital and asset valuation reserves.
99, TEI believes it would be inconsistent to establish a company-size threshold for disclosure of the loss or valuation reserves.
The regulatory initiatives include a "risk-based capital" (RBC) requirement effective by year-end 1993; an asset valuation reserve (AVR) and an interest maintenance (IMR) requirement, both effective since the beginning of 1993; and a model investment law likely to become effective in 1994.
Under Section 18, a life company should "have a minimum of $100,000,000 of capital and surplus, exclusive of any mandatory security valuation reserve," which would generally equate to a Best's financial size category of VIII.
Capital and surplus, including asset valuation reserves (AVR), rose to $237 billion from $210 billion.
The bank's NPL ratio (net of valuation reserves), based on Bangko Sentral ng Pilipinas guidelines, declined to 0.92 percent, from 1.39 percent in the prior year.