Hidden Reserve (Noun)
Meaning
Reserves that do not show up on the balance sheet (as by understating values).
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's financial reports failed to account for a substantial hidden reserve of assets, including property and investments.
- Auditors raised concerns about the lack of transparency in the company's financial statements, suspecting that they had accumulated significant hidden reserves over the years.
- By artfully understating the value of their assets, the company was able to accumulate large hidden reserves that remained off the balance sheet.
- Investors grew suspicious when they realized that the company's assets seemed undervalued, leading them to suspect the existence of hidden reserves.
- Regulators scrutinized the company's financial reports, searching for evidence of hidden reserves that could be used to manipulate the company's financial position.