Accountancy | |
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Key concepts | |
Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow forecasting · Chart of accounts · Journal · Special journals · Constant item purchasing power accounting · Cost of goods sold · Credit terms · Debits and credits · Double-entry system · Mark-to-market accounting · FIFO and LIFO · GAAP / IFRS · General ledger · Goodwill · Historical cost · Matching principle · Revenue recognition · Trial balance | |
Fields of accounting | |
Cost · Financial · Forensic · Fund · Management · Tax (U.S.) | |
Financial statements | |
Balance sheet · Cash flow statement · Statement of retained earnings · Income statement · Notes · Management discussion and analysis · XBRL | |
Auditing | |
Auditor's report · Financial audit · GAAS / ISA · Internal audit · Sarbanes–Oxley Act | |
Accounting qualifications | |
CA · CPA · CCA · CGA · CMA · CAT · CFA · CIIA · IIA · CTP · ACCA |
In financial accounting, the term reserve is most commonly used to describe any part of shareholders' equity, except for basic share capital. Sometimes, the term is used instead of the term provision; such a use, however, is inconsistent with the terminology suggested by International Accounting Standards Board.
For more information about provisions, see provision (accounting).
Equity reserves are created from several possible sources:
Reserve is the profit achieved by a company where a certain amount of it is put back into the business which can help the business in their rainy days.