The term reserves is used under IFRS with reference to all of the following except:

(a) gains and losses on revaluation of property, plant, and equipment.

(b) capital received in excess of the par value of issued shares.

(c) retained earnings.

(d) fair value differences.

The shares in the hands of investors are known as outstanding shares. These shares are used for determining earnings per share.

(b) Capital received in excess of the par value of issued shares.

Reason: Under IFRS, the capital received over the par value of the share issued by a company is reported as share premium. Therefore, it is an incorrect option.

All other options are correct because the reserve account under IFRS includes:

(a) The gains or losses arising from the increase or decrease in the value of property, plant, and equipment at the time of revaluation.

(c) Retained earnings are also reported in a reserve account under IFRS because it includes the profit held for re-investment and dividend payment.

(d) Fair value differences are also included in a reserve account because fair value measurement generates profit or loss for a business entity.