What does line 1370 of the balance sheet consist of: decoding

Drawing up mandatory financial statements for sending to the tax authorities requires filling out an officially established form containing columns with various names. It is also necessary to indicate not only the name, but also the code of the column. In accordance with this, the question arises about deciphering line 1370 of the balance sheet. To figure this out, you need to know what information this line should contain. This will allow you to correctly draw up a report and submit it without violations to the relevant authorities to verify the information and activities of the organization.

Definition

retained earnings

(uncovered loss) – the final financial result of the company’s activities for the reporting year, one of the components of liabilities, i.e. the company’s sources of funds, included in the “Capital and Reserves” section of the Balance Sheet.

Retained earnings represent the company's profit for the reporting year minus income tax, dividends, penalties for violation of tax laws and other expenses at the expense of profits (clause 83 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 N 34n).

An uncovered loss is a company's loss for the reporting year that is not covered by relevant sources.

How is retained earnings (uncovered loss) formed and used?

The increase in the balance of retained earnings, reflected in the credit of account 84 “Retained earnings (uncovered loss)”, occurs due to the net profit of the reporting year, which is written off to account 84 from account 99 “Profits and losses” with the final turnover of December of the reporting year (Instructions for using the Plan accounts).

The net profit indicator increases:

– correction in the reporting period of significant errors of previous years made by companies that are not small enterprises, which led to overestimation of expenses during the period of errors (clause 1, clause 9, clause 14 of PBU 22/2010);

– write-off to account 84 of additional capital from the revaluation of non-current assets disposed of in the reporting period (clause 15 of PBU 6/01, clause 21 of PBU 14/2007);

– restoration in the composition of retained earnings of the amounts declared and unclaimed after the expiration of the dividend payment period established by the current legislation of the Russian Federation (Letter of the Ministry of Finance of the Russian Federation dated January 27, 2012 N 07-02-18/01).

The use of retained earnings for the payment of dividends (including interim ones - clauses 1 and 2 of Article 42 of the Federal Law of December 26, 1995 N 208-FZ; clause 1 of Article 28 of the Federal Law of February 8, 1998 N 14- Federal Law), is reflected by posting to the debit of account 84 in correspondence with accounts 75 “Settlements with founders”, 70 “Settlements with personnel for wages”.

Also, the net profit indicator decreases when:

– increasing the authorized capital at the expense of retained earnings;

– direction of retained earnings to the reserve fund.

The use of retained earnings for expenses, for example, as a source of capital investments, is reflected only in analytical accounting by reserving the corresponding amount in a special subaccount (subaccount) of account 84, for example:

Debit 84 “Retained earnings (uncovered loss)”

Sub-account (sub-account) “Retained earnings (uncovered loss)”

Credit 84 “Retained earnings (uncovered loss)”

Subaccount (subconto) “Use of retained earnings as a source of capital investments.”

The increase in the balance of uncovered loss, reflected in the debit of account 84, occurs due to the reflection of the loss of the reporting year, which is written off to account 84 from account 99 “Profits and losses” with the final turnover of December of the reporting year

The indicator of uncovered loss increases the correction in the reporting period of significant errors of previous years made by companies that are not small enterprises, which led to an understatement of expenses in the period of errors (clause 1, clause 9, clause 14 of PBU 22/2010).

Repayment of uncovered losses from relevant sources is reflected in the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with the accounts:

– 80 “Authorized capital” - when bringing the amount of the authorized capital to the value of the organization’s net assets in connection with the repayment of a loss due to the excess of the amount of the authorized capital over the amount of the organization’s net assets;

– 82 “Reserve capital” – when funds from reserve capital are used to pay off losses;

– 75 “Settlements with founders” – when repaying losses through targeted contributions from participants (shareholders).

Systematization of accounting

05/04/2018 Contents (uncovered loss)" This line reflects the amount of retained earnings or uncovered loss of the organization.

The amount of retained profit (uncovered loss) of the reporting period is equal to the amount of net profit (net loss) of the reporting period, i.e. profit (loss) after taxation: - reduced by the amount of accrued interim dividends; — increased by the amount of additional capital from the revaluation of fixed assets and intangible assets disposed of in the reporting period (clause

15 PBU 6/01, clause 21 PBU 14/2007); — adjusted by the amount of increase in the authorized capital due to retained earnings (reduction of the authorized capital when it is brought to the value of net assets). The amount of the organization’s net profit for the reporting period in accounting is reflected in the credit of account 99 “Profits and losses”, and the amount of net loss is in the debit of account 99. The amount of retained earnings is recorded in the credit of account 84, and the amount of uncovered loss is in the debit of account 84.

The accrual of dividends (both interim and at the end of the year) is reflected in the debit of account 84 in correspondence with accounts 75 “Settlements with founders”, subaccount 75-2 “Settlements for the payment of income”, and 70 “Settlements with personnel for wages” ( Instructions for using the Chart of Accounts). When filling out the line “Retained earnings (uncovered loss)” of the Balance Sheet compiled during the preparation of annual financial statements, data from accounts 99 and 84 are used.

The uncovered loss is shown in the Balance Sheet in parentheses. In general, the indicators in line 1370 “Retained earnings (uncovered loss)” as of December 31 of the previous year and as of December 31 of the year preceding the previous year are transferred from the balance sheets for previous years.

With the financial statements of 2011, Order of the Ministry of Finance of Russia dated December 24, 2010 N 186n came into force, introducing changes to regulatory legal acts on accounting, which entail a change in the accounting policies of organizations. Since this Order does not establish a procedure for reflecting the consequences of changes in accounting policies, these consequences are reflected in the financial statements retrospectively (clause.

clauses 14, 15 PBU 1/2008). That is, comparative indicators indicated in the columns “As of December 31, 2010” and "As of December 31, 2009" on line 1370 “Retained earnings (uncovered loss)”, as well as related items, must be adjusted as if the new accounting policy had been applied from the moment the facts of economic activity of this type arose. Date of publication: 2015-04-10; Read: 298 | Copyright infringement of the page Home/ Accounting statements/ Line 2400 Attention! Important news from the site! Expanding the functions of the site.

Remember the new address Line 2400 of the financial statements refers to the Statement of Financial Results. Line 2400 reflects information about the organization’s net profit (loss), or retained earnings (uncovered loss).

When preparing interim reporting:

Accounting for dividends

Line 1370 of the balance sheet contains a breakdown. Monetary compensation paid during the period is recorded in a special column in parentheses in section Ⅲ. Field 1371 is called “including interim dividends”. They are specified in the report in the following way - retained profits or losses are recorded, and compensation is recorded in another line.

The balance sheet plan provides a separate account for profit and loss. It reflects the values that have accumulated over the course of a year. If the report needs to be drawn up for an intermediate date, then the group account is entered in the line, where profits and losses are noted.

They accumulate money from ordinary operations carried out by the organization, and various amounts directly related to this group.

In some situations, a company must adjust its indicators in January:

1370 includes revaluation of assets if:

the total result of the devaluation of assets is higher than the revaluation amount included in additional capital after the revaluation that took place last year;
accounting for previously undervalued assets;
revaluation of intangible assets discounted in the previous period.

The indicator changes when the estimated value of assets changes:

when the period of operation of intangible assets is specified;
establishing a method for calculating depreciation.

Profit includes the results of revaluation of fixed assets when:

The fixed assets were not undervalued, but before there had been a markdown, and its value was entered in line 1370 in the previous period;
the amount of depreciation of a fixed asset is higher than its revaluation, which was included in additional capital based on the results of the revaluation carried out in the previous period;
there is a depreciation of fixed assets that were not previously undervalued.

An example of filling out a simplified balance sheet for a simplified tax system

The composition of simplified financial statements is as follows:

Balance sheet;
Income statement.

If an enterprise needs to provide any additional information, and the simplified reporting forms do not contain the required columns, then general reporting forms can be used. Thus, small businesses decide on their own which forms to submit financial statements. The main thing is that the decision made is reflected in the accounting policy. Requirements for filling out a simplified balance sheet The annual balance sheet must contain data on the assets and liabilities that the organization has at the end of the reporting year, that is, as of December 31. Additionally, information on previous years is entered into the balance sheet, that is, as of December 31 of last year and as of December 31 of the year before.

A bank’s refusal to carry out a transaction can be appealed. The Bank of Russia has developed requirements for an application that a bank client (organization, individual entrepreneur, individual) can send to an interdepartmental commission in the event that the bank refuses to make a payment or enter into a bank account (deposit) agreement. of the balance sheet for its submission to the tax authorities and statistical authorities, after the column “Name of the indicator”, you must indicate the line code (clause

5 Order of the Ministry of Finance dated July 2, 2010 No. 66n).

How to calculate retained earnings or uncovered loss

They are calculated using the required formula. The total amount of net profit or loss for a specific time is added up. This concept refers to the amount that remains after taxes have been deducted. Calculations will help you correctly fill out line 1370 and the explanation for it.

Example in the report: as of December 31, 2016, the amount for loan 84 is 489,000 rubles. During the year, dividends amounting to 20 thousand rubles were paid. The entry will look like this: Dt 84 Kt 75 – settlements with the founders. 1370 will include 489,000, and 1371 will include 29,000, which reflects interim dividends.

Summarizing the above, we found out that column 1370 in the balance sheet may consist of retained earnings or uncovered losses. It includes compensation, which is entered below in another line 1371. Reporting at the end of the year or at an intermediate date may vary. When a company does not have retained earnings or losses, the amount of net similar indicators is entered in the line. In this case, the line will have the same value as 2400.

Line 1370 “Retained earnings (uncovered loss)”

Line 1370 reflects the amount of retained earnings or uncovered loss of the organization:

The concept of NP

So, what is meant by this definition? In accounting, this is, of course, a liability, since it includes the share of capital of the persons who own the property. Yes, while this profit is not aimed at any specific goals, but a well-written accounting report quickly resolves this issue.

NP is a kind of reserve that is distributed at the discretion of the owners and resolves pressing issues.

Typically, the profit received is used for the following purposes:

You can put money into investments, improving production and making it more cost-effective and advanced
Another option is to buy assets that will generate profit in the future
You can also pay dividends
And finally, you can create reserves or replenish existing ones

The liability can be used only after a meeting of owners has been held and it has been decided what it will be used for, and the direction of the funds will be noted in the minutes. NP is noted in article 1370 in the corresponding section “Capital”. There is also a loss here.

So, as you probably already understood, NP is the amount that remains after paying taxes. The definition is very close to the concept of net profit. And if during the year the organization has not accrued dividends and has no tax debts, then the NP will become net profit.

True, there is some difference here. NP shows the result not only for a specific period, but also for the entire period of operation of the company as a whole. While the state of emergency is responsible only for a specific period. Accordingly, accountants interpret these two concepts differently.

The video will tell you what retained earnings are:

What does line 1370 of the balance sheet consist of?

The line codes in the accounting reporting forms are given in Appendix No. 4 to Order of the Ministry of Finance dated July 2, 2010 No. 66n. Thus, line 1370 is called “Retained earnings (uncovered loss).” As the name suggests, this line reflects the amount of retained earnings or uncovered losses accumulated as of the reporting date.

In accordance with the Chart of Accounts and the Instructions for its use, account 84 “Retained earnings (uncovered loss)” is provided for accounting for retained earnings (uncovered loss).

However, this account only reflects the profit or loss accumulated at the end of the year, i.e., December 31st. If the balance is drawn up as of the interim reporting date, to fill out line 1370, the balance of not only account 84, but also account 99 “Profits and losses” is used. Let us recall that it is in account 99 that profits or losses from ordinary activities, other operations, as well as amounts directly attributed to account 99 (for example, fines for violation of tax laws) are accumulated throughout the year.

If a loss is reflected on line 1370 on the reporting date, then its amount is shown not with a minus, but in parentheses, for example: (10,000).

Please also note that interim dividends paid during the reporting year are shown in the balance sheet separately in parentheses on a separate line in Section III of the balance sheet (Letter of the Ministry of Finance dated December 19, 2006 No. 07-05-06/302). For example, on line 1371 “including interim dividends”.

Let's give an example. As of December 31, 2017, the credit balance of account 84 is 365,000 rubles. At the same time, interim dividends in the amount of 29,000 rubles were paid during the year, which corresponded to the accounting entry of the form: Debit account 84 – Credit account 75 “Settlements with founders” (Order of the Ministry of Finance dated October 31, 2000 No. 94n). Therefore, in the balance sheet at the end of 2021, profit and its use for the payment of interim dividends will be reflected as follows:

Legislative regulation

First of all, line 1370 of the balance sheet is regulated according to the Chart of Accounts and other similar documents.

Also taken into account is Order of the Ministry of Finance No. 66n, which also determines exactly how these columns are filled out. Naturally, the rules according to which accounting is conducted are also taken into account.

What is contained in column 1370

The codes are indicated in the supplement to the orders regulating the preparation and entry of information into the reporting documentation. Retained earnings in the balance sheet are line 1370. The column also contains the amount of uncovered loss that has accumulated over a certain period of time at the time the balance sheet was written.

According to the Chart of Accounts, account 84 is intended for recording retained profits and losses. Profits and losses received as of December 31 are recorded in it. In column 1370 enter the amounts for the reporting years - both the current and the previous one. The loan balance is shown here. If the organization has suffered a loss, the account balance is entered in the line by debit.

When a document is written for the reporting period, the remainder of 84 and 99 “Profit and Loss” is entered into 1370. It is the latter that displays the result of accumulated profits or losses from usual activities, other operations, and the money that is directly related to this account. These are penalties for violation of the Tax Code of the Russian Federation.

If, as of the date of writing the report, losses were recorded at the enterprise, their amount is written without the minus sign, and in brackets: (2000).

Online magazine for accountants

Info

If equality is observed, the balance is considered to be compiled correctly, and if the amounts do not agree, then errors were made in filling out the balance. The procedure for filling out a simplified statement of financial results Report line Accounting account 2110 “Revenue” Difference of indicators: · Turnover on the credit of the “Revenue” sub-account to the “Sales” account · Turnover on the debit of the “VAT” sub-account to the “Sales” account 2120 “Expenses for ordinary activities » Amount by debit of subaccounts to account 90 “Sales”, on which accounting is kept: · Cost of sales · Selling expenses · Administrative expenses The indicator is indicated in parentheses, the minus sign is not placed. 2330 “Interest payable” The amount of accrued interest on loans for the current year is indicated. The indicator is indicated in brackets, no minus sign is used.

Accounting for dividends

They accumulate money from ordinary operations carried out by the organization, and various amounts directly related to this group.

In some situations, a company must adjust its indicators in January:

1370 includes revaluation of assets if:

the total result of the devaluation of assets is higher than the revaluation amount included in additional capital after the revaluation that took place last year;
accounting for previously undervalued assets;
revaluation of intangible assets discounted in the previous period.

The indicator changes when the estimated value of assets changes:

when the period of operation of intangible assets is specified;
establishing a method for calculating depreciation.

Profit includes the results of revaluation of fixed assets when:

The fixed assets were not undervalued, but before there had been a markdown, and its value was entered in line 1370 in the previous period;
the amount of depreciation of a fixed asset is higher than its revaluation, which was included in additional capital based on the results of the revaluation carried out in the previous period;
there is a depreciation of fixed assets that were not previously undervalued.

Reflection of retained earnings (uncovered loss) in the financial statements

Retained earnings (uncovered loss) for the reporting year are reflected in line 2400 “Net profit (loss)” of the Statement of Financial Results.

The balance of retained earnings (uncovered loss) is accounted for in line 1370 “Retained earnings (uncovered loss)” of the Balance Sheet (Appendix No. 1 to Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n).

Interim dividends paid during the year for which financial statements are prepared are reflected separately (i.e. on a separate line) in the annual balance sheet in the section “Capital and reserves” (in parentheses) (Letter of the Ministry of Finance of Russia dated December 19, 2006 N 07-05-06/302).

The movement of retained earnings (uncovered loss) during the reporting period is reflected in the Statement of Changes in Capital (Appendix No. 2 to Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n).

Procedure for filling out reports

Retained earnings (uncovered loss) (line 1370) This line must reflect the amount of retained earnings (uncovered loss) generated as of December 31, 2015. At the same time, the indicator of line 1370 “Retained earnings (uncovered loss)” includes profit (loss) of both the current year, 2015, and previous years. The profit received is reflected in the credit of account 84 “Retained earnings (uncovered loss)”.

The credit balance of this account is entered in line 1370. If a loss has formed in the company's accounting, it is reflected in the debit of account 84. In this situation, the debit balance of this account is entered in line 1370. At the same time, it is indicated in the balance sheet in parentheses. Formation of profit (loss) Retained profit (uncovered loss) of the reporting year 2015 is written off to account 84 when reforming the balance sheet. Example In 2015

Is it true that retained earnings are net profits?

Retained earnings are truly net profits that (as the name suggests) were not distributed (divided) among the participants/shareholders of the company. Net profit is considered to be that part of income from sales and non-sales operations that remains after paying taxes.

The decision on how to distribute this income rests solely with the owners. Traditionally, the issue of retained earnings is put on the agenda of the annual meeting of the company's owners. The adopted decision is documented in minutes, which are drawn up following the results of the general meeting of participants/shareholders.

The main ways of spending retained earnings are considered to be in the following directions:

to pay dividends to participants/shareholders;
repayment of past losses;
replenishment (creation) of reserve capital;
other goals formulated by the owners.

Is retained earnings an asset or a liability?

Retained earnings on the balance sheet are, of course, a liability. The value of this indicator indicates the company’s actual debt to its owners, since ideally this profit should be distributed among the participants and invested in the further development of the business.

In fact, the company cannot dispose of retained earnings without the owners making a decision. The loss reflected in line 1370 is also on the passive side of the balance sheet, only this is a negative value, so the number is placed in parentheses.

Retained earnings and uncovered losses - what are they?

As mentioned above, retained earnings are the final income received by the company from its business activities, remaining after the transfer of income taxes and not yet divided (not directed to other purposes) by its owners.

Example 1

Voskhod LLC in 2021 received a profit of 800,000 rubles and paid income tax in the amount of 160,000 rubles. In line 1370 in the balance sheet liability at the end of 2021, Voskhod LLC should reflect 640,000 rubles. This is retained earnings.

The value in line 1370 of the balance sheet may be equal to that indicated in line 2400 of the financial results report if the company had no profits not distributed by the owners at the beginning of the year and no interim dividends were paid during the year.

As for the uncovered loss, this is the excess of the company's expenses over income at the end of the year.

Example 2

In 2021, Parus-Trade LLC received revenue from the provision of services and other non-operating income. Their total amount was 400,000 rubles.

The costs associated with conducting the main activity (transportation) are equal to 380,000 rubles. Other company expenses (not taken into account for tax purposes) amounted to another 58,000 rubles. Profit tax was assessed in the amount of RUB 4,000. Parus-Trade LLC has no reserve capital.

This means that at the end of 2021, after the balance sheet reformation, an entry of 42,000 rubles will appear in line 1370 in parentheses. (400,000 – 380,000 – 4,000 – 58,000).

An uncovered loss occurs when the company receives an actual loss and there are no financing reserves. The value entered in the liability side of the balance sheet in parentheses will reduce the total for section 3 of the balance sheet.

Among the main reasons for receiving an uncovered loss are:

obtaining an actual negative financial result from the company’s activities due to the excess of costs over income;
changes in accounting policies that had an impact on the financial condition of the company (this is directly stated in paragraph 16 of PBU 1/2008, approved by order of the Ministry of Finance of Russia dated October 6, 2008 No. 106n);
errors found in the current year, made in previous years, which affected the financial result (subclause 1, clause 9 of PBU 22/2010, approved by order of the Ministry of Finance of Russia dated June 28, 2010 No. 63n).

Retained earnings of the reporting year

The credit balance at the end of the year according to accounting account 99 is net profit. When reforming the balance sheet, it is written off to accounting account 84 (Dt 99 Kt 84) and constitutes retained earnings at the end of the reporting year.

In order to separate the indicators of retained earnings of the current (reporting) year from last year’s, some accountants allocate separate lines 1372 and 1372 in the balance sheet, which respectively reflect the retained earnings of the reporting period and previous years.

The use of retained earnings is the prerogative of the company's owners. And highlighting this financial indicator for different years in the balance sheet is primarily convenient for them. But it is worth keeping in mind that the retained earnings of the past year cannot be fully distributed without taking into account the company’s previous operating results.

IMPORTANT! It must not be allowed that the value of the company’s net assets, after transferring retained earnings of the reporting year for the payment of dividends, becomes less than the size of the company’s authorized capital even if there is a reserve fund. The caution applies to cases where uncovered losses were recorded in previous years. The decision to cover last year's losses from retained earnings of the reporting year is made exclusively by the owners of the company.

But retained earnings for previous years can be distributed by the participants/shareholders of the company not only at the end of the year, but at any time. The main thing is to hold a thematic meeting of all company owners and approve the appropriate decision.

Example 1

In 2021, revenue from the sale of goods of Solnyshko LLC amounted to 2 million rubles (excluding VAT). The cost of goods that were sold amounted to 1 million rubles (purchase from suppliers, transportation, etc.). Other costs of the company - 70 thousand rubles.

Business transactions

Dt90.9 Kt99

930 thousand rubles – net profit of the LLC.

From the final financial result of the company, income tax was paid to the budget.

Dt99 Kt68

186 thousand rubles – settlements with the Federal Tax Service of Russia.

After carrying out the balance sheet reformation procedure, the following posting was made

Dt99 Kt84

744 thousand rubles - the retained profit of the company is displayed.

In the balance sheet of Solnyshko LLC at the end of 2021, line 1370 will contain the amount of 744 thousand rubles.

Example 2

As a result of the analysis of financial and economic activities, a loss was identified based on the results of activities in 2021. The loss as of January 1, 2018 amounted to 40 thousand rubles. The founders of the company decided to cover the loss through their own targeted financing.

Business transactions

Dt50 Kt75

15 thousand rubles – cash contribution by the founders.

Dt51 Kt75

25 thousand rubles – transfer of funds by the founders to the company’s current account.

Dt75 Kt84

40 thousand rubles - the loss is covered by targeted contributions from the founders.

Postings in accounting

For balance sheet reformation, two indicators are used, for write-off of losses - four indicators.

For the first indicator the following data is used:

For retained earnings, the figures used are Dt 99/Kt 84
If a NU is found, then it is designated as Dt 84/Kt 99

For the second option, please provide the following information:

If NU is written off at the expense of profits received in previous months, then this is indicated by the numbers Dt 84/Kt 84
When repaying the authorized capital, the numbers Dt 82/Kt 84 are entered
If the minus was financed by the owners, then the indicators are set to Dt 75/Kt 84
And finally, when bringing it to the size of net assets, Dt 80/Kt 84 is set

It is these indicators that are usually found as postings most often. However, due to the fact that the loss can be compensated for in other ways, there are other postings.

Retained earnings: calculation formula

According to general accounting data, retained earnings are a company's net profit after taxes that can be distributed to the company's owners.

Based on global financial practice, retained earnings (hereinafter referred to as RR) are calculated using the following formula:

NPk = NPn + PE – Div,

Where:

NPk - NP at the end of the reporting year;

NPn - NP at the beginning of the reporting period;

PE - net profit remaining after accrual of income tax;

Div - dividends paid in the reporting year based on the NP of previous years.

If you do not have the NP value, then to calculate the NP you can use the following scheme:

first calculate profit before tax (to determine it, calculate operating profit, which is defined as the difference between operating income and operating expenses);
then subtract depreciation and interest costs from operating profit;
Subtract tax from the resulting profit value.

Indicators for investors

When analyzing the financial condition of a company, investors pay attention to the use of retained earnings. If NP accumulates and is not put into circulation, this state of affairs should seem to suit investors, since they can count on significant dividends.

However, without investment in its activities, the company stops growing, and its income not only does not increase, but may also decrease (due to a drop in competitiveness, high wear and tear of equipment, and for other reasons related to the lack of investment). So a company that accumulates profits but does not invest in its activities cannot be attractive.

At the same time, a company that does not make a profit and does not pay dividends cannot interest investors at all.

The ideal option for investors is a company that invests the funds remaining after paying dividends in its development. Although the owners may decide not to pay dividends and direct the entire volume of NP into circulation.

How to calculate retained earnings or uncovered loss

Component strings

As we have already found out, in the column with line 1370 the amount of uncovered loss or the amount of retained profit should be entered.

The period for which this amount accumulated and how much it amounted to during the reporting period is indicated:

Both the pros and cons are not listed on the same line. There is a separate account for each of them.
The report indicates not only the amounts accumulated from ordinary transactions, but also the amounts that are directly related to this group.

The amounts obtained by plus or minus are calculated using a special formula. To make the calculations, you need to calculate the net amount of profit or loss for a specific period. This includes those amounts that remained in the report after taxation. These amounts will be useful to fill out the line.

Results

There is a separate line in the balance sheet to reflect retained earnings (profit remaining after the amount of income tax or net profit has been withdrawn from it). The figure entered into it corresponds to the amount of the entire net profit accumulated over the years of the company’s activity. During the reporting year, the value of retained earnings in accounting relating to this year can be seen in a separate accounting account. Dividends are paid out of net profit.

Sources

https://www.audit-it.ru/terms/accounting/neraspredelennaya_pribyl_nepokrytyy_ubytok.html
https://zagranic.ru/2020/09/10/stroka-1370-buhgalterskogo-balansa-rasshifrovka/
https://nalog-nalog.ru/buhgalterskij_uchet/vedenie_buhgalterskogo_ucheta/neraspredelennaya_pribyl_v_balanse_nyuansy/
https://warmedia.ru/1370-%D1%81%D1%82%D1%80%D0%BE%D0%BA%D0%B0-%D0%B1%D0%B0%D0%BB%D0% B0%D0%BD%D1%81%D0%B0/

[collapse]