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SBRP2 - Difference betwee cons reserves and cons R/E

EEdward12y ago
Hi, Can you explain the difference in the above for me and what should be included in both. Keep getting confused when completing q1 in P2 paper. Thanks, Ed
Sszparag12y ago#1
R/E is retained earnings and includes just the profits from previous years and from current year. Reserves is a much wider notion, which means everything that goes to equity, other than the share capital, ie R/E, revaluation reserves, fx exchange profit/loss, other components of equity etc.
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