What are Retained Earnings Roll Forward?
A Retained Earnings Roll Forward is a reconciliation schedule or process that shows the detailed movements in retained earnings from one reporting period to the next. It provides transparency on how retained earnings changed over time due to various financial activities.
What's the Purpose of Retained Earnings Roll Forward?
To reconcile changes in retained earnings from the prior period to the current.
To trace adjustments like:
Prior period restatements
Dividend payments
Net income/loss
Other comprehensive income transfers or reserves
Structure Example
Description | Amount |
|---|---|
Beginning Retained Earnings | $1,000,000 |
+ Net Income | $200,000 |
- Dividends | ($50,000) |
+/- Adjustments | $10,000 |
Ending Retained Earnings | $1,160,000 |
Common Use Cases:
Monthly or quarterly close processes
Board reporting or investor updates
Audit support and internal controls
Historical tracking of dividends vs. reinvestment
Additional materials:
