Reserves set up out of earnings or sur. plus to indicate a possible future loss or claim against the corporation, the likelihood of which is open to considerable que$. tion (e.g., possible future decline in the market value of inventories or marketable securities owned). In most cases they mav be regarded as part of the surplus, but occasionally inHfaJ probable as well as merely possible losses or claims. These were formerly in common use but now are rarely found in financial statements.