Revenue and Other Reserves
According to the Notes and Instructions for Compilation of Balance Sheet and Profit and Loss Account, issued by the RBI, the expression ‘Revenue Reserve’ shall mean any reserve other than capital reserve.
All reserves, other than those separately classified (viz., statutory reserves, capital reserves and share premium) will be shown under this head. The expression ‘reserve’ shall not include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability. In terms of RBI guidelines, the ‘Investment Reserve Account’ representing write back of excess provision on investments has to be treated as revenue reserve.