reserves

Reserves

1. See: Foreign exchange reserves.

2. See: Reserve for bad debt.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Fig. 75 Reserves. Reserves and profit.

reserves

1. any additional claims of company shareholders which reflect increases in the value of company ASSETS in the BALANCE SHEET. Revenue reserves arise when some aftertax profit is retained in the business to finance the acquisition of extra assets, rather than being paid out as DIVIDENDS (see Fig. 75). Capital reserves arise when company assets such as buildings are revalued to reflect their increased market value due to inflation. Reserves serve to increase SHAREHOLDERS' CAPITAL EMPLOYED in a company. See also RETAINED PROFITS, CAPITALIZATION ISSUE, RETENTIONS RATIO, APPRECIATION, definition 1, REVALUATION PROVISION, INFLATION ACCOUNTING.
2. the proportion of a bank's total assets which it keeps in the form of liquid assets.
3. monetary assets held by countries to finance balance of payments deficits. See INTERNATIONAL RESERVES.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

reserves

1. any additional claims of company shareholders that reflect increases in the value of company ASSETS in the BALANCE SHEET. Reserves arise when some aftertax profit is retained in the business to finance the acquisition of extra assets rather than being paid out as DIVIDENDS or when company assets such as buildings are revalued to reflect their increased market value because of inflation. Reserves serve to increase SHAREHOLDERS‘CAPITAL EMPLOYED in a company. See also RETAINED PROFITS, CAPITALIZATION ISSUE, APPRECIATION 2, INFLATION ACCOUNTING.
2. the proportion of a bank's total assets that it keeps in the form of liquid assets.

   See RESERVE-ASSET RATIO.

3. monetary assets held by countries to finance balance of payments deficits. See INTERNATIONAL RESERVES.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

reserves

See reserve fund.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.