Legal Definitions - suspense reserve

A suspense reserve is a portion of a company's retained earnings that is set aside for a specific purpose and cannot be used for other purposes, such as paying dividends. It is also known as appropriated surplus or surplus revenue.

For example, a company may set aside a suspense reserve to cover potential legal expenses or to fund a future expansion project. This reserve is not available for distribution to shareholders as dividends.

Another related term is lost earnings, which refers to income that a person could have earned if they had not lost their job or suffered a disabling injury. Lost earnings are often awarded as damages in legal cases.

Overall, a suspense reserve is a way for a company to plan for future expenses or investments while still maintaining a stable financial position.