Other reserves (overige reserves)

What do other reserves mean?

Other reserves (overige reserves) are parts of equity that are not presented as share capital, share premium or a specific statutory reserve.

The name does not mean that every amount may be distributed immediately. The articles of association, loss positions and the distribution test can impose restrictions. Movements follow, for example, from profit appropriation.

How does it work?

Other reserves are the residual item of equity (art. 2:373(1)(f) DCC): everything that is not issued capital, share premium, revaluation reserve, other statutory reserve, reserve under the articles or undistributed profit. In practice they are the profits of earlier years that the general meeting has left in the company. The item can be negative if losses were greater than retained profits.

Distribution is permitted insofar as equity exceeds the statutory and articles-based reserves (art. 2:216(1) DCC). The resolution has effect only once the board approves it; the board refuses if the BV could not continue to pay its due debts afterwards (paragraph 2). A new statutory reserve, for example for capitalised development costs, is formed at the expense of other reserves. See how much dividend may I pay.

Example

A BV has on 1 January 2026: issued capital € 100, share premium € 9.900 and other reserves € 35.000. The 2025 profit of € 20.000 is fully reserved in May 2026: other reserves € 55.000. In 2026 the BV capitalises € 30.000 of development costs and forms a statutory reserve for it: other reserves 55.000 − 30.000 = € 25.000. Equity is still € 65.000, but the room for distributions under art. 2:216(1) DCC has fallen to 65.000 − 30.000 = € 35.000.

In the annual accounts

Equity on the balance sheet; notes on movements where required.

Difference from statutory reserves

A statutory reserve must be maintained by the company because the law prescribes it (art. 2:373(4) DCC); it cannot be distributed. Other reserves are free, within the tests of art. 2:216 DCC. See what are statutory reserves.

Common mistakes

• Seeing a reserve as a bank balance
• Forgetting loss offsetting

What to watch for

• Reconcile the movement: opening balance plus profit reserved, less dividend charged to the reserves, plus or minus the movements of statutory reserves.
• State direct movements, such as the effect of a change in accounting policy, separately; they do not run through the profit and loss account.
• Medium-sized and large entities include a movement schedule for each equity item (art. 2:378(1) DCC). Small entities show the items separately, with only the movement of the revaluation reserve (art. 2:396(5) DCC); micro entities show one amount (art. 2:395a(4) DCC).

Legal basis and source

art. 2:373 DCC

• Dutch Civil Code, Book 2, article 373

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