Retained Profit / Retained Earnings
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Accounting for Companies Limited by Shares
MS: Untung Tertahan · EN: Retained Profit / Retained Earnings · ZH: 保留盈余
Meaning
Retained profit is the balance of a company's net profit that is kept and not distributed as dividends to shareholders. It accumulates year by year and can be used to finance growth or to pay dividends in future. Retained profit forms part of Owner's Equity.
Example
For example, Utama Berhad has an opening retained profit of RM20,000 and earns a current-year net profit of RM50,000. After declaring dividends of RM15,000, the closing retained profit becomes RM55,000 and is carried forward to the following year.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5