Moonitz 1951, 80-81) for the consolidated balance sheet and income statement favor a consolidated retained earnings
statement under the parent company theory, as illustrated in Panel A of Exhibit 5.
Contractual Agreements: When a company issues long-term bonds, the bond provisions or debt covenants often require the periodic appropriation of a certain amount of retained earnings
As alluded to above, many S corporations will have fewer than four retained earnings
Without tapping into legal capital reserves, many Japanese banks, including SMBC, will not be able to secure sufficient retained earnings
to pay out full-year dividends on preferred shares held by the government, industry officials said.
In the second case, where the reissue price is lower, the difference may be debited to the Retained Earnings
account as an alternative to a reduction from the Paid-in Capital account.
Reflecting differences in dividend policy as well as changes in relative profitability, retained earnings
as a share of assets at small and medium-sized banks continued at levels near those of 1988 but fell for large banks and turned negative for money center banks (table 7).
After payment of the third quarter of 2014 dividend, the FHLBNY's level of unrestricted retained earnings
will be approximately USD 800.
43 allows the company to "accomplish, in its books of account, substantially what might be accomplished in a reorganization by legal proceedings--that is, elimination of a deficit in retained earnings
and establishment of a new basis of accounting for its assets and liabilities.
In addition, half of the capital requirement must be met with "core" capital, defined as common equity, retained earnings
, and perpetual preferred stock.
After payment of 2Q14 dividend, the FHLBNY's level of unrestricted retained earnings
will be approximately USD 789.
Because GAAP financial statements have significant predictive value, interested parties can track trends in sales or revenues, dividends, retained earnings
and book values.