capital reserves

client wants to show value of his developed software on the balance sheet--as an asset and corresponding capital reserve.

currently losses have been written off in the pl and show on balance sheet as negative revenue reserve.

what is the latest thinking on creation of capital reserves and calculation of same
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  • A resource created by the accumulated capital surplus of an organization, such as by an upward revaluation of its assets to reflect their current market value after appreciation. Allocating such sums to capital reserve means they are permanently invested and will not be paid as dividends firstpremiercard login.