Distribution can be continued in future years, and it is an integral part of owners' equity before distribution. In terms of quantity, undistributed profit is the balance of undistributed profit at the beginning of the period plus net profit realized in the current period minus extracted surplus reserve and distributed profit.
Undistributed profit refers to the profit that the net profit realized by the enterprise remains in the enterprise after making up the losses, drawing surplus reserves and distributing profits to investors.
Undistributed profit has two meanings: one is the profit reserved for future years; Second, there is no profit specified for a specific purpose. Compared with other parts of owners' equity, enterprises have greater autonomy in the use of undistributed profits.
Undistributed profit is the result of adjusting the realized profit and the distributed profit at the year-end settlement of the enterprise, and its calculation can be expressed by the following formula:
Accumulated undistributed profit at the end of the year = accumulated undistributed profit of the previous year+realized net profit of this year-distributed profit of this year.
Profits distributed this year = fines and penalties for confiscation of property losses and violation of tax laws+compensation for losses in previous years+withdrawal of surplus reserve and statutory public welfare fund+profits distributed to investors.
Tips: The above contents are for reference only.
Response time: 2021-11-16. Please refer to the latest business changes announced by Ping An Bank in official website.