General Reserve
Code: 3720
👁 Views: 115
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
A voluntary reserve formed by a general assembly resolution to meet emergencies or finance future expansions. It can be distributed or used by shareholder resolution.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 505
Equity
❓ Frequently Asked Questions
Q: What is the general reserve?
A: A voluntary reserve formed by a general assembly resolution to meet emergencies or finance future expansions.