Appropriated Retained Earnings


DEFINITION of 'Appropriated Retained Earnings'

Any unappropriated retained earnings that are specifically not to be used for dividend payments. Appropriated retained earnings can be used for many purposes, such as improving infrastructure, R&D or marketing. They are not passed on directly to shareholders in any form.

BREAKING DOWN 'Appropriated Retained Earnings'

Any amount of appropriated retained earnings that are not used for such purposes are then poured back into dividend payments. For example, a company uses $10 million of appropriated retained earnings to build a new factory. But the cost of the factory comes in under budget, so the firm will allocate the remaining funds back into the unappropriated retained earnings.

  1. Accounting Earnings

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  3. Net Income - NI

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  4. Retained Earnings

    Retained earnings is the percentage of net earnings not paid ...
  5. Earnings Yield

    The earnings per share for the most recent 12-month period divided ...
  6. Accountant

    A professional who performs accounting functions such as audits ...
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