Zyski zatrzymane a wynik z lat ubiegłych – analiza ujawnień w sprawozdaniach finansowych wybranych spółek giełdowych
Retained earnings vs. profit (loss) of previous years – analysis of disclosures in the financial statements of selected stock companies

Summary/Abstract: Profit (loss) of previous years is a position that can be used to cover losses or mask other accounting frauds. The intention of the authors was to start discussions on how to present and disclose information about retained earnings. The purpose of the article is to evaluate the disclosures of “profit (loss) of previous years” in selected listed companies. The category of “profit (loss) of previous years” under IAS/IFRS is included in ”retained earnings”, whose definition and components are not strictly defined by the regulator. The study covered 20 consolidated financial statements of entities that showed a significant level of retained earnings relative to assets or financial result. The study confirmed the varied presentation of retained earnings, which makes it difficult to obtain information on dividend policy. Another application concerns the profit (loss) of previous years; which was influenced by changes in accounting policy or errors of previous periods.

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