Withdrawal of reserve fund refers to the amount of reserves approved by an enterprise to make up for its operating losses and increase its capital. In accounting treatment, it is also called "withdrawal of reserve fund", which is the secondary detailed content of the subject of "profit distribution". This course is mainly used to calculate the reserve fund drawn by enterprises from this year's net profit according to regulations. When an enterprise withdraws its reserve fund, it shall conduct accounting through the subjects of "profit distribution-withdrawal of reserve fund" and "surplus reserve-reserve fund".

Processing flow of drawing provident fund: the borrower reflects the provident fund drawn by the enterprise, and the lender reflects the provident fund drawn from the detailed account of profit distribution-undistributed profit at the end of the year. After the year-end, the detailed account of profit distribution-drawing provident fund has no balance.

Reserve, as its name implies, is mainly used for safety reserve. Specifically, it is a reserve fund property that is extracted from the net profit of fund products according to the provisions of laws and regulations and approved by relevant departments to make up for product losses and increase capital.

The standard of reserve fund is mainly implemented in accordance with the standards determined by laws and regulations. According to the Detailed Rules for the Implementation of People's Republic of China (PRC) and the Law of People's Republic of China (PRC) on Enterprises with Foreign Investment, foreign-invested enterprises established in China shall, after paying enterprise income tax in accordance with the provisions of the tax law of China, draw a part of reserve funds and employee incentive and welfare funds from these profits.