Prior Years Retained Earnings
Code: 3310
👁 Views: 117
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Represents the net profits of prior financial years after deducting distributions and reserves. The balance of current year profit/loss is closed to this account at year end.
Sub-accounts
3321
Current Year Profit
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 220
Comprehensive Income
❓ Frequently Asked Questions
Q: What are prior years retained earnings?
A: The net profits of prior financial years after deducting distributions and reserves.
Q: How is current year net profit closed to this account?
A: At year end, the current year profit account is closed to prior years retained earnings.