hidden reserve


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Hidden Asset

Value that a person or company possesses that does not appear on its balance sheet. One may have a hidden asset due to an accounting convention. For example, a company may be required to depreciate an asset faster than its actual value declines. This results in a higher net worth for the company than would be reflected in its books. A hidden asset is also called a hidden reserve or a hidden value.

Secret Reserve

The amount by which shareholder equity in a company exceeds the amount claimed on its financial statements. Secret reserves arise when a company overstates its liabilities or understates its assets, usually because its accounting practices depart from GAAP. In such cases, the company must declare that its accounting is different from that of most other companies. The secret reserve may eventually be converted to cash and distributed to shareholders. It is also called the hidden reserve.

hidden reserve

The amount by which a firm's net worth is understated. For example, overdepreciation results in assets and net worth being carried on the firm's financial statements at less than market value.

hidden reserve

the undervaluation of the ASSETS, or overvaluation of the LIABILITIES, of a firm in its BALANCE SHEET. For example, the value of a firm's land and buildings may be shown in the balance sheet at HISTORIC COST or original cost, whereas the current market price of those assets may be considerably higher. Thus, if the assets were to be revalued to reflect current market values the difference would be formally recorded in the balance sheet as an addition to capital RESERVES. See INFLATION ACCOUNTING.

hidden reserve

the undervaluation of the ASSETS or overvaluation of the LIABILITIES of a firm in its BALANCE SHEET. For example, the value of a firm's land and buildings may be shown in the balance sheet at HISTORIC COST or original cost, whereas the current market price of those assets may be considerably higher. Thus, if the assets were to be revalued to reflect current market values, the difference would be formally recorded in the balance sheet as an addition to capital RESERVES. See INFLATION ACCOUNTING.
References in periodicals archive ?
For all three models, the number of bids is negatively and significantly related to the opening bid and presence of a hidden reserve. (14) Consistent with Bajari and Hortacsu (2000) and Katkar and Lucking-Reiley (2000), we find that the number of bids is negatively related to the opening price.
Hidden Reserve and Solerina's half-sister Fair Ina both made big impressions when fighting out the finish of the mares' bumper
"Either Mars has hidden reserves of carbon-dioxide ice that can supply large amounts of carbon-dioxide gas into the atmosphere during warm periods of more recent climate cycles, or Block Island fell billions of years ago," he added.
Hidden reserves Experts consider that Libyan oil and gas reserves are considerably higher than the officially listed figure of 41.5 billion barrels of crude and 51 billion cubic feet of gas.
But you might do better to look inward, at those hidden reserves of energy and resources within yourself, which could be harnessed in any such crisis.
Henderson uses the term "no seeums" in describing the hidden reserves of copper, PGM's (platinum group metals) and other minerals existing in their properties that are not easily visible to the eye.
The game appeared up for Australia when all-rounder Ian Harvey was run out in the 31st over --but yet again they were able to draw on the hidden reserves for which they have become renowned.
But, fortunately, ongoing work is revealing that "a vast number of people who might once have been considered vegetative actually have hidden reserves of mental activity." This is also true for people diagnosed in a minimally conscious state as well, Zimmer writes.
New techniques, including GX Technology's proven seismic imaging capability and expertise, will enable Tuscan Energy, along with its partner Acorn Oil North Sea, to find and produce hydrocarbons from Britain's oldest North Sea oil field which is estimated to contain more than 40 million barrels of hidden reserves.
The ever-expanding Fulton showed hidden reserves of pace to burst free inside the box moments later but Fuller couldn't direct his cross goalward under pressure from Thomson.
But the Sue Smith-trained gelding, under strong pressure from jockey Warren Marston, plumbed hidden reserves and fighting tenaciously from the last, got up on the line.
(In Bartlett's refashioning of the script, Richard's sexuality is once again opaque, as it should be.) Crispin Letts' supremely dry performance in the role matches Feast's for an implacability hinting at hidden reserves -- keeping the audience on its toes, wondering what social or sexual reversal will transpire next.