UK Accounting Glossary
Undistributable Reserves (also known non-distributable profit) are reserves that may not be distributed according to the Companies Act.
Undistributable Reserves (also known as Capital Reserves) are reserves that may not be distributed as per rules/regulations laid out in the Companies Act.
These reserves often include items such as share capital, share premium accounts, capital redemption reserves, certain unrealised profits, or any other reserve that a company may not distribute for any given reason, whether that be due to a Legal Act or due to it’s own constitutional documentation.
Within the US, such reserves are known as Restricted Surplus items.
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This glossary post was last updated: 5th May 2019.