Balance of Retained Earnings

Balance of Retained Earnings

A financial statement declaring a company's retained earnings at the beginning and end of an accounting period. It begins with the unadjusted retained earnings from the previous accounting period, then lists adjustments, adds net income, and subtracts dividends paid. The final entry lists the retained earnings at the end of the accounting period. The balance of retained earnings is published along with a balance sheet.
References in periodicals archive ?
Fidessa will adopt the modified retrospective transition method with the cumulative effect of initially applying the standard reflected as an adjustment to the opening balance of retained earnings as of 1st January 2018.
The total available for appropriation for last year, along with the balance of retained earnings brought forward from previous years, is BD2,753,735, it was announced.
The effect of the change to fair value was reflected as a cumulative-effect adjustment to the opening balance of retained earnings and the changes to fair value after that date as a component of current earnings reflected in the income statement.
* On an unconsolidated basis, Fujitsu Limited had a negative balance of retained earnings for fiscal 2006 ended March 31, 2007.
Any transition asset or obligation remaining from the initial application of SFAS 87 or 106 shall be recognized as an adjustment to the opening balance of retained earnings, net of tax.
This fresh look may require an adjustment to the beginning balance of retained earnings in the year of adoption for uncertain tax positions that do not meet this new standard.
This larger retained earnings balance allows for greater potential dividend distribution in those jurisdictions that mandate that dividends cannot exceed the balance of retained earnings.
Instead, they will report any necessary adjustment as an adjustment to the opening balance of retained earnings for the earliest period presented.
The beginning balance of retained earnings should be adjusted for the cumulative effect of the error.
When a prior period adjustment is made, the beginning balance of retained earnings is adjusted.
Retrospective application refers to adjusting the opening balance of retained earnings or other components of equity (such as other accumulated comprehensive income) for the cumulative effect of the change on all prior periods rather than reporting it on the income statement.
When it is not practical to determine either the period-specific effects or the cumulative effect of the change to all prior periods presented, the statement requires companies to apply the new accounting principle to asset and liability balances as of the beginning of the earliest period for which retrospective application is practicable and to make a corresponding adjustment to the opening balance of retained earnings (or other component of equity) for that period.
Full browser ?