Undisclosed Reserves


DEFINITION of 'Undisclosed Reserves'

The unpublished or hidden reserves of a financial institution that may not appear on publicly available documents such as a balance sheet, but are nonetheless real assets, which are accepted as such by most banking institutions.

BREAKING DOWN 'Undisclosed Reserves'

Undisclosed Reserves are generally described as such only in the banking industry as it applies to capital requirements and are designated as Tier 2 capital along with revaluation reserves and general provisions. Tier 1 or, core, capital is mainly composed of stockholders' equity in the company.

  1. Tier 1 Capital

    A term used to describe the capital adequacy of a bank. Tier ...
  2. Revaluation Reserve

    An accounting term used when a company has to enter a line item ...
  3. General Provisions

    A balance sheet item representing funds set aside by a company ...
  4. Tier 2 Capital

    One of two categories by which a bank's capital is divided. Tier ...
  5. Thrift Bank

    A financial institution focusing on taking deposits and originating ...
  6. Retail Banking

    Typical mass-market banking in which individual customers use ...
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  1. Can working capital be negative?

    Working capital can be negative if a company's current assets are less than its current liabilities. Working capital is calculated ... Read Full Answer >>
  2. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  3. Does working capital include prepaid expenses?

    The calculation for working capital includes any prepaid expenses that are due within one year, since such prepaid expenses ... Read Full Answer >>
  4. Does working capital include short-term debt?

    Short-term debt is considered part of a company's current liabilities and is included in the calculation of working capital. ... Read Full Answer >>
  5. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  6. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>

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