UK Accounting Glossary
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 its own constitutional documentation.
Within the US, such reserves are known as Restricted Surplus items.
Undistributable Reserves refer to reserves that may not be distributed according to the Companies Act. These include share capital, share premium account, capital redemption reserve, certain unrealised profits, or any other reserves that the company may not distribute according to some other Act or its own constitutional documents. In the USA such reserves are known as restricted surplus.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Undistributable Reserves are sourced/syndicated and enhanced from:
This glossary post was last updated: 5th May 2019.