Retained earnings

The retained earnings (GV ) is the remainder of the net profit a year remaining after profit appropriation resolution. He is presented with the help of the balance sheet item "Profit / loss carried forward " into the next year and then used the amount- regulation of the profits of the following year. A retained earnings must be added to the success of the following year.

Usually, in public companies, large parts of the net profit will be distributed to shareholders in form of dividends. The posted to the retained earnings often ensures that an " appropriate " amount of the distribution is created.

The term does not correspond with the tax loss carryforward.

Determination of the profit brought forward

For the determination of the net profit in accordance with § 158 AktG, the following scheme is applied. The retained earnings of the current year is then obtained from this determined retained earnings.

Net income / loss for the year                 - Loss carried forward ( last year)                 Retained earnings (previous year)                 Withdrawals from 1 capital reserves                                   2 Retained earnings                                      a) Statutory reserves                                      b ) Reserves for own shares                                      c ) Statutory reserves                                      d ) other reserves                 - Settings in a) Statutory reserves                                      b ) Reserves for own shares or units of other                                      c ) Statutory reserves                                      d ) other reserves                   = Net profit                 - Total dividend                 - Transfers to other reserves                 - Additional expense                 = Retained earnings see also

• Retained earnings

• Accounting