IAS 39 and Reserves: Difference between pages

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imported>Doug Williamson
m (Checked against IASB & Deloitte 20/4/13 - no change)
 
imported>Doug Williamson
(Added numbering to the two definitions and more spacing)
 
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International Accounting Standard 39, dealing with financial instruments: recognition and measurement.
1.
To be superseded in due course by IFRS 9 'Financial Instruments'.  
 
''Accounting''. 
 
Reserves represent the amount of money ‘owed’ to the owner (shareholder) of the company.
 
In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.
 
 
2.
 
''Banking''.
 
Deposits maintained by non-[[central bank]] [[monetary financial institution]]s with their central bank in the latter's capacity as 'the bankers' bank'. Central banks may require institutions to maintain minimum balances with the central bank, in which case balances in excess of the minimum are known as 'excess reserves'.  
 
Of course banks publish accounts and use the term in the accounting sense also - do not be confused by this.
 


== See also ==
== See also ==
* [[ALFV]]
* [[Interest on excess reserves]]
* [[Available-for-sale]]
* [[Merger reserve]]
* [[FRS  5]]
* [[Official reserves]]
* [[FRS 26]]
* [[Reserve requirements]]
* [[Hedge effectiveness]]
* [[Special drawing rights]]
* [[Held for trading]]
* [[Trapped cash]]
* [[Held-to-maturity]]
 
* [[HFT]]
[[Category:Long_term_funding]]
* [[IAS 18]]
* [[IFRS  9]]
* [[International Financial Reporting Standards]]
* [[Loans and receivables]]

Revision as of 09:44, 30 May 2015

1.

Accounting.

Reserves represent the amount of money ‘owed’ to the owner (shareholder) of the company.

In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.


2.

Banking.

Deposits maintained by non-central bank monetary financial institutions with their central bank in the latter's capacity as 'the bankers' bank'. Central banks may require institutions to maintain minimum balances with the central bank, in which case balances in excess of the minimum are known as 'excess reserves'.

Of course banks publish accounts and use the term in the accounting sense also - do not be confused by this.


See also