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DEFINITIONS

Capital Reserve

Definition

#1. Capital Reserve is financial resource created by the accumulated capital surplus of a corporation coming from the increased market value of its assets. The assets are re-valuated to reflect current market conditions.

#2. Capital Reserve is a type of account that is reserved for future long-term capital investment projects or other large and anticipated expenses to ensure funding of the project or expense. These amounts can only be spent on the project for which they were intended. The funds are accumulated from the company's regular operations that can be extended with contributions from government subsidies or donated funds.

RELATED TERMS
Cash Reserves
Subsidy



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