The Statement of Retained Earnings also known as "Statement of Owners' Equity" and "Statement of Net Assets" for non-profit organizations, is one of the basic financial statements as per Generally Accepted Accounting Principles, and it explains the changes in company's retained earnings over the reporting period. It breaks down changes affecting the account, such as profits or losses from operations, dividends paid, and any other items charged or credited to retained earnings. A retained earnings statement is required by Generally Accepted Accounting Principles (GAAP) whenever comparative balance sheets and income statements are presented. It may appear in the balance sheet, in a combined Income Statement and Changes in Retained Earnings Statement, or as a separate schedule.

Generally Accepted Accounting Principles