Browse Financial Statements

Statement of Income and Retained Earnings

The statement of income and retained earnings combines period profit with the period's change in retained earnings in one report.

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The statement of income and retained earnings is a combined financial statement that presents period income and the related change in retained earnings in one report.

Instead of presenting the profit figure and the retained-earnings rollforward separately, it shows how the earnings result for the period flows into ending retained earnings.

Why It Matters

This format makes the retained-earnings bridge explicit:

  • profit or loss is reported

  • dividends and similar changes are applied

  • ending retained earnings is derived

It is useful when a business wants one concise statement that ties operating performance directly to the retained-earnings balance.

Revised on Monday, May 18, 2026