capital reserves

Definitions

Accounting

  • plural noun money from profits, which forms part of the capital of a company and can be used for distribution to shareholders only when a company is wound up.
  • plural noun the share capital of a company which comes from selling assets and not from their usual trading

Economics

  • plural noun the share capital of a company which comes from selling new shares or revaluing assets and not from normal trading; these reserves cannot be distributed to the shareholders, except if the company is wound up (and are also known as ‘undistributable reserves’)
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