What are reserves in a balance sheet?



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In Dominos Pizza Balance sheet; "RESERVES", For the period ( 2005-2008 if i'm correct) there was only little difference in the figure. What is the meaning of this, 1)Dominos did not use their reserve funds from the beginning? 2) They haven't diverted any of the profit to the Reserves?

1 Answer(s)


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Reserves is accumulated profits earned by a company over a period of time. These are profits of a company that have not yet been distributed. These reserve profits could be either from operations or from revaluation of an asset. So if the reserves number hasn't changed much, that only means that they have not massively revalued any asset nor set aside any material profits as reserves.