kapitaalreserve

Kapitaalreserve, often translated as capital reserve, is an accounting term that refers to a portion of a company's equity that is not derived from retained earnings or share capital. It represents accumulated profits or gains that have been set aside for specific purposes, often dictated by legal requirements or management decisions. These reserves can arise from various sources, including the revaluation of assets, the premium received on the issuance of shares above their nominal value, or the profit realized from the sale of assets.

Unlike retained earnings, which can generally be distributed to shareholders as dividends, capital reserves typically have restrictions on their use. These restrictions are often in place to protect creditors or to ensure the company maintains a certain level of financial stability. For instance, a company might build up a capital reserve to absorb potential future losses, fund major capital expenditures, or meet regulatory capital requirements. The specific rules and classifications of capital reserves can vary significantly depending on the jurisdiction and the type of legal entity. Understanding the nature and purpose of a company's capital reserves provides insight into its financial strength and its strategic objectives.