Unappropriated Retained Earnings

What are 'Unappropriated Retained Earnings'

Unappropriated retained earnings consist of any portion of company earnings that are not classified as appropriated retained earnings. Unappropriated retained earnings cannot be allocated for a specific purpose, such as factory construction or marketing. They are generally passed on to shareholders in the form of dividends.

BREAKING DOWN 'Unappropriated Retained Earnings'

Unappropriated retained earnings essentially determine the amount of dividend that will be paid to shareholders. The greater the retained earnings, the higher the dividend that can be paid. These earnings are divided among all of the outstanding shares of the company and paid according to a set schedule.

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RELATED FAQS
  1. How are retained earnings related to a company's income statement?

    Understand what a company's statement of retained earnings represents and how it is related to a company's other financial ... Read Answer >>
  2. How do you calculate retained earnings per share?

    Research the amount of retained earnings per share compared over time to understand whether or not a company uses its profits ... Read Answer >>
  3. Which transactions affect the retained earnings statement?

    Retained earnings are the portion of a company's income that management retains for internal operations instead of paying ... Read Answer >>
  4. How is revenue related to retained earnings?

    Learn what business revenue is and how it relates to retained earnings. See how accountants calculate these key figures and ... Read Answer >>
  5. Why is there controversy over the use of the information ratio?

    Understand the effect that stock dividends have on a company's retained earnings account and how large and small dividends ... Read Answer >>
  6. What is the impact of retained earnings on stockholders equity?

    Learn about the relationship between retained earnings and stockholders' equity for a corporation and how it is reported ... Read Answer >>
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