0
Also called indirect, unreported, or undisclosed earnings, that part of the surplus earnings of a subsidiary company, over and above dividend payments, not reported by the parent company. Most of the large corporations hold or control through full, majority, joint (half, third, quarter, etc.) or minority stock ownership in subsidiary is or affiliated companies. Unless the ownership of such subsidiary is a majority interest, the parent company cannot under proper accounting principles consolidate the earnings of a subsidiary or subsidiaries in the income account of the parent company, but only such part of such earnings as may be actually paid to the parent organization as dividends. When earnings of subsidiaries are consolidated in the income account of the parent organization, the proportion of earnings applicable to the minority interest must be deducted.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Are retained earnings an asset equity or liability?
asset equity
What affects stockholders equity?
increase retained earnings
How do you figure total equity if given assets liabilities and net income?
It's pretty easy. The basic financial equation is: Assets = Equity + Liabilities. A part of equity is retained earnings. Retained earnings = net income - dividends Equity = Assets - Liabilities
Is retained earnings asset or liability?
Neither. Retained Earnings falls in the Equity section of the Balance Sheet.
Retained earnings appear on the income statement?
No. Retained Earnings appears in the Equity section of the Balance Sheet.
Are retained earnings an asset equity or liability?
asset equity
Is retained earnings a liability?
NO, the retained earnings would be in the equity part of the equation.
What is net equity?
net new equity is given by the formula; new equity-old equity- addition to retained earnings
What is net new equity?
net new equity is given by the formula; new equity-old equity- addition to retained earnings
Where do retained earnings go?
Retained earning does not go anywhere. It is a part of capital equity which shown in equity section of balance sheet.
What is the difference between profit and equity?
Profit is earnings, a smaller amount the price of create the earnings. And Equity is property defect liabilities. This is the worth of what the owner in fact owns. Income increase equity. Extra investment also increases equity.
What is Net new equity raised?
net new equity is given by the formula; new equity-old equity- addition to retained earnings
What affects stockholders equity?
increase retained earnings
How do you figure total equity if given assets liabilities and net income?
It's pretty easy. The basic financial equation is: Assets = Equity + Liabilities. A part of equity is retained earnings. Retained earnings = net income - dividends Equity = Assets - Liabilities
What are the components of equity?
a) Shareholder's Equity = Share Capital + Retained Earnings - Treasury Shares or b) Shareholder's Equity = Assets - Liabilities
What are the subdivisions of owners equity?
the four subdivision of owner's equity are: Capitals Withdrawls Expenses Earnings (Revenues) DO NOT MISTAKEN ACCOUNT PAYABLES & RECEIVABLES AS BEING EXPENSES AND EARNINGS or REVENUES :)
Is retained earnings asset or liability?
Neither. Retained Earnings falls in the Equity section of the Balance Sheet.
