Reserve
A reserve is an accounting label for a designated equity amount, valuation allowance, liability estimate, or restricted resource, depending on context.
Accounting guidance for distinguishing equity reserves, surplus labels, provisions, valuation allowances, and restricted assets.
Reserve and surplus labels vary by jurisdiction and financial-statement tradition. Reserve separates equity components from provisions, valuation allowances, bank reserves, and actual restricted cash. Surplus distinguishes earned amounts from contributed or revaluation-related equity.
Use the statement of changes in equity, account roll-forward, accounting policy, governing documents, and applicable law before interpreting a balance. Neither label proves that cash is segregated, unrestricted, or legally available for dividends.
These pages are educational and do not provide accounting, tax, legal, corporate-finance, investment, or valuation advice.
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A reserve is an accounting label for a designated equity amount, valuation allowance, liability estimate, or restricted resource, depending on context.
In accounting, surplus is a jurisdiction-specific equity label for accumulated earnings, contributed capital, or another excess amount defined by the account.