Accumulated profits, also known as accumulated earnings, represent the amount of net income that a company has retained over time, after paying out dividends, taxes, and setting aside reserves. This amount is reflected in the appropriation of profits account and can be carried forward to the next year’s accounts.
Accounts prepared under the double-entry bookkeeping system, where the retained earnings figure on the profit and loss account matches the increase in net worth on the balance sheet, subject to changes like capital injections.
In finance and accounting, 'capital' refers to various forms of assets, interests, or financial contributions that play a critical role in the functioning of an entity or the production process, enhancing productivity and enabling operations.
Earned Surplus, also known as Retained Earnings, represents the portion of net income that is retained by a company rather than distributed to its shareholders as dividends. These retained earnings are reinvested in the business or used to pay off debt.
Earnings and Profits refers to the economic capacity of a corporation to make a distribution to shareholders that is not considered a return of capital. If distributed, it constitutes a taxable dividend to the shareholder to the extent of current and accumulated earnings and profits.
An illegal dividend is a dividend declared by a corporation's board of directors in violation of its charter or state laws, typically including dividends paid out of capital surplus or those that would render the corporation insolvent.
Owner's equity represents the portion of an organization's value held by its owners, encompassing capital investments and retained earnings, minus liabilities such as dividends and other financial obligations.
Ploughed-back profits, also known as retained earnings, are the portion of net income that is not distributed to shareholders as dividends but is kept within the company to reinvest in its core operations, pay off debt, or reserve for future use.
Pre-acquisition profits refer to retained earnings accumulated by a company before it is acquired by another entity. These profits are not to be distributed to the shareholders of the acquiring company as dividends, as they represent a recovery of the cost of investment rather than income.
A prior period adjustment is an accounting term used to describe a correction to an error in previously issued financial statements. These adjustments are necessary to accurately reflect the financial status of a company or organization.
A profit and loss account reserve is a reserve that contains the balance of retained earnings to carry forward. It is fully distributable and shown as part of shareholders' reserves on the balance sheet.
A Profit and Loss Appropriation Account is a financial statement showing how the net profits or losses have been dealt with in a given period.
In accounting, a reserve refers to a part of a company's capital, other than its share capital. This capital can largely arise from retained profits or from the issuance of share capital at more than its nominal value. Reserves differ from provisions as they represent undistributed surpluses, with some being non-distributable. Directors may earmark these funds for specific purposes.
Retained earnings represent the portion of net income that a company retains, rather than distributing it to shareholders as dividends, to reinvest in its core business or to pay off debt.
Retained Earnings, also known as retained profits, ploughed-back profits, or retentions, represent the portion of net profit remaining after distribution to shareholders. This amount is retained within the company for reinvestment purposes.
Retained earnings refer to the portion of a company's profit that is held back and not distributed to shareholders as dividends. These earnings are reinvested in the business for growth, debt reduction, or other corporate purposes.
A statement that provides a reconciliation of the beginning and ending balances in the retained earnings account on a company's balance sheet.
An account used to indicate that a portion of retained earnings is not available for dividends but is earmarked for specific purposes.
A revenue reserve is a distributable reserve, meaning it is part of a company's retained earnings that can be distributed to shareholders in the form of dividends or used to cover future uncertainties and contingencies.
A financial statement that combines the income statement and the statement of retained earnings, detailing a company's profit, dividends, and equity changes during a period, as outlined by the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102, Section 6).
Unappropriated profit refers to the portion of an organization's profit that has not been distributed as dividends or allocated for a specific purpose. These profits remain retained in the company for future use.
Unappropriated retained earnings refer to the portion of a company's retained earnings that have not been earmarked for any specific purpose and can be used for general business activities. This is akin to regular retained earnings unless a portion has been set aside for particular uses.
Undistributed profit refers to the profit earned by an organization that has not been distributed to its shareholders by way of dividends. Such sums are available for later distribution but are frequently used by companies to finance their activities.
Undistributed profits, also known as retained earnings or net income, refer to the portion of a company's earnings that is not distributed to shareholders as dividends but is retained by the company for reinvestment in its operations, debt repayment, or other purposes.
A year-end dividend is a distribution of profits made by a corporation to its shareholders, declared at or near the end of the business year and typically paid from retained earnings.
