Retained Earnings Statement

reconciliation of the beginning and ending balances in the retained earnings account on a company’s balance sheet. It breaks down changes affecting the account, such as profits or losses from operations, dividends declared, and any other items charged or credited to retained earnings. A retained earnings statement is required by generally accepted accounting principles whenever comparative balance sheets and income statements are presented. It may appear in the balance sheet, in a combined profit and loss statement and retained earnings statement, or as a separate schedule. It may also be called statement of changes in earned surplus (or retained income).

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