valuation reserve
- noun
- Specialized
:
reserva de valoración
- Changes in asset prices led to an adjustment of the valuation reserve at year-end.
Examples
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The company established a valuation reserve for potential asset depreciation.
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Auditors recommended establishing a valuation reserve for the firm's real estate holdings.
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The company increased its valuation reserve to protect against potential losses in asset value.
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Many firms maintain valuation reserves to safeguard against market fluctuations.
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The company set aside a substantial valuation reserve to protect against potential declines in asset values.
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During the annual audit, the accountants noted that the valuation reserve had increased due to rising property values.
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To ensure financial stability, management decided to establish a valuation reserve from this year's profits.
Synonyms
194
3.5
A supply kept for future use, often in an emergency
3
4.1
Money set aside to pay for future costs or emergencies
1
4.3
A place a bank or company keeps money to pay future costs
An account where a company keeps money to cover losses when assets lose value
A record where a company keeps money for future loss in value of its goods
Money or supplies kept for future use
How Large
- Specialized
1
5.8
- Specialized
Surface Forms
Morphology
The meaning is directly built from 'valuation' (estimating value) + 'reserve' (amount set aside): a sum kept to cover valuation-related changes in asset value. This noun–noun composition follows a transparent, compositional pattern common across languages, so a B1 learner who knows both words can reasonably infer the phrase's meaning.
Etymology
Valuation reserve may come from the simple image of a company doing a valuation — checking how much its things are worth — and then putting money into a reserve like a safety box. That's why it means 'an amount of money set aside from profits to cover possible drops in the value of the company's assets'.