Appropriation of Retained Earnings

What Is Meant by the Appropriation of Retained Earnings?

A restriction of retained earnings that occurs when the board of directors transfers a portion of the retained earnings account into a separate appropriated retained earnings account in order to indicate to stockholders, and to others, that the balance in the appropriated retained earnings account is not available for dividends.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.