Definicja retained earnings (EC-CS)

The accumulated annual net income since the founding of the consolidation unit, adjusted by the distributions of dividends and by appropriations, such as transfers to, or withdrawals from, provisions.

Debit values are referred to as net loss.

The retained earnings (RE) of the corporate group is made up of the total RE of the consolidated companies, taking into consideration the standardizing and consolidating entries as well as additional reclassifications based on the corporate policies concerning financial statements.

The way RE is stated in the Consolidation system depends on the order of the items for appropriating RE within the chart of accounts.

If the appropriation of RE is stated on the balance sheet, then RE is defined as a totals item encompassing the financial statement item "Annual Profit" as well as all items related to the appropriation of RE.

If the appropriation of RE is portrayed as an addendum to the income statement, then RE is a single value item on the balance sheet. The item must then be entered accordingly on the individual financial statement (reported financial data).