Restrictions of Retained Earnings - titled Appropriated...

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Restrictions of Retained Earnings Companies often restrict retained earnings to comply with contractual requirements, board of directors’ policy, or current necessity. Generally, companies disclose in the notes to the financial statements the amounts of restricted retained earnings. In some cases, companies transfer the amount of retained earnings restricted to an account
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Unformatted text preview: titled Appropriated Retained Earnings . The retained earnings section may therefore report two separate amounts(1) retained earnings free (unrestricted) and (2) retained earnings appropriated (restricted). The total of these two amounts equals the total retained earnings....
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This note was uploaded on 03/08/2011 for the course ACCOUNTING 14 taught by Professor Saeedi during the Spring '11 term at Amirkabir University of Technology.

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