A non-statutory reserve that is created by virtue of the application of accounting policy for non-financial assets such as property, equipment, investment property and intangible assets that are measured using a revaluation model. Asset revaluation reserves are often used as a cover or a cushion against unexpected losses to the carrying value of specific assets. However, the reserve may not be fully available to cover unexpected losses associated with subsequent deterioration in market values and any tax consequences of revaluation.

For asset revaluation reserves, an entity creates a line item on its balance sheet in order to maintain reserve amounts relating to specific assets. The respective line item can be used when an entity finds out, based on a revaluation assessment, that the carrying value of a specific asset has changed.

It is known for short as an ARR.