| appropriation of retained earnings (EC-CS) |
A systematic schedule which shows the relationship between the annual net income and the retained earnings of a consolidation unit or consolidation group.
Retained earnings statements may not be prepared for nonlegal entities or consolidated groups. The appropriation of retained earnings can either be integrated on the balance sheet or stated as an addendum to the income statement. The method used affects the retained earnings item on the balance sheet and the balance to be carried forward.