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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.

Explaining '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.


Further Reading


Determining the Impact of Dividends, Earnings, Invested Capital and Retained Earnings on Stock Prices in Pakistan: An Empirical Study
search.proquest.com [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …

Earnings, retained earnings, and book-to-market in the cross section of expected returnsEarnings, retained earnings, and book-to-market in the cross section of expected returns
www.sciencedirect.com [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …

Division of Retained Earnings to Reflect Business NeedsDivision of Retained Earnings to Reflect Business Needs
www.jstor.org [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …

Cyclical behavior of debt and equity using a panel of canadian firmsCyclical behavior of debt and equity using a panel of canadian firms
www.econstor.eu [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …

What is Economic Income for Corporate Taxation?What is Economic Income for Corporate Taxation?
meridian.allenpress.com [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …

The Fundamentals of Financial Forecasting Condition of Oil Production EnterpriseThe Fundamentals of Financial Forecasting Condition of Oil Production Enterprise
www.atlantis-press.com [PDF]
… It is also known as unappropriated profit … Bhole, LM (1980). Retained Earnings, Dividends and Share Prices of Indian Joint-Stock Companies … Gordon, MJ (1959). Dividends, Earnings, and Stock Prices.The Review of Economics and Statistics, 41, 99-105. Khan, KI (2011) …



Q&A About Unappropriated Retained Earnings


What is unappropriated retained earnings?

Unappropriated retained earnings are any portion of company earnings that are not classified as appropriated retained earnings.

What determines the amount of dividend that will be paid to shareholders?

The greater the unappropriated retained earnings, the higher the dividend that can be paid. These earnings are divided among all outstanding shares and paid according to a set schedule.

How do unappropriated retained earnings differ from appropriated retained earnings?

Appropriated retained earnings can be allocated for a specific purpose, such as factory construction or marketing. They cannot be passed on to shareholders in the form of dividends.

What is an example of an appropriation of retained earning?

An example would be if a company decides to use $1 million in its current year's profits for new equipment purchases instead of paying it out as dividends, then this $1 million would become part of appropriated earned income and not unappropriated earned income.