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Retained earnings differ on Income S and Balance S

How can retained earnings on income statement be different to retained earnings on balance sheet?

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Hi there

I've been looking at RateSetter (Retail Money Market Limited) at Companies House. Latest accounts March 2019. Unusually, it has retained earnings on the income statement, as well as the balance sheet. It's showing a retained loss of £65 million on the income statement and £53 million retained losses on the balance sheet.

I was just wondering why these numbers are allowed to be different - how that can happen?


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By thevaliant
05th Aug 2020 10:04

Homework question eh?

Or just didn't read the headers correctly.
One is the CONSOLIDATED position, the other is the COMPANY position. Both agree with each other. They're both right.

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Replying to thevaliant:
By Neil Faulkner
05th Aug 2020 10:20

Ah, I knew you were going to say I was doing something silly. Thanks!

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By graydjames
05th Aug 2020 10:10

So you mean Retail Money Market Ltd. Helps to get the name right to start with!

You are comparing the retained earnings of the group in the consolidated income statement with the retained earnings of the company i.e. not the group. Look at the consolidated balance sheet on page 13 and you will see the figures are the same.

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Replying to graydjames:
By Neil Faulkner
05th Aug 2020 10:21

Haha! Thanks to you, too, for the very quick answer.

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