Part of shareholders' funds. Arises when an asset is revalued in a company's balance sheet. The profit on revaluation is considered to be part of shareholders' funds but is shown in a separate reserve to highlight the fact that the profit is not realised, since the asset has only been revalued, not actually sold. Dresdner Kleinwort Wasserstein financial glossary
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A reserve attributable to shareholders, produced by revaluation of a company's capital assets such as its property holdings.
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revaluation reserve UK US noun [C] (also revaluation reserves [plural])
► ACCOUNTING an amount of money shown in a company's accounts which relates to the revaluation of assets: »
The surplus or deficit from revaluation should be transferred to the revaluation reserve account.
Financial and business terms. 2012.