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).