capital reserve meaning

  "capital reserve" in a sentence
[Business]
noun [C, usually pl.]

(Accounting )

1 (also undistributable reserve, non-distributable reserve, both especially BrE)

profits, such as the increased value of a building, etc., that a company keeps as part of its capital and which cannot be paid to shareholders:

The profit on the sale of the shares was transferred to capital reserves.

RESERVE noun (3), RETAINED EARNINGS, REVENUE RESERVE

2

a supply of money that a company or an organization keeps for an expected future cost, such as repairing property or buying new equipment:

We have built up capital reserves to replace the roof in five years' time.


[Finance]
A type of account on a municipality's or company's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense(s) that will be incurred in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance the project.

Examples

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  1. other capital reserve
  2. identifying the characteristics of chinese accounting from the change in detailed account of capital reserve
  3. thinking on establishing financial capital reserving commercial bank's evaluation inspiring system
  4. the premium resulting from issuance of shares at a price above par value shall be allocated to the company ' s capital reserve fund
  5. invested capital, capital reserve, surplus reserve and undis ? tributed profit shall be shown by items in accounting statement

Related Words

  1. capital rationing meaning
  2. capital redemption reserve meaning
  3. capital reduction meaning
  4. capital requirement meaning
  5. capital requirements meaning
  6. capital reserves meaning
  7. capital risk meaning
  8. capital share meaning
  9. capital shares meaning
  10. capital ship meaning
PC Version