What is Profit Not Distribution? What is undistributed profit

From the literal meaning, it can be understood that the meaning of profit is not distributed: the net profit of profit is not divided.

Generally speaking, dividends of listed companies will be considered from the company's point of view, if there is more profit, dividends may be paid, and if the net profit is less, then dividends will not be paid.

Regarding the dividend, investors can enjoy the dividend as long as they buy it on the record date. Record date: refers to the date on which investors can participate in the distribution of dividends and dividends.

The role of dividends for investors

From the investor's point of view, its role is as follows:

1) It can open up investment channels for investors, expand the range of investment options, adapt to the needs of investors' diversified investment motives, transaction motives and interests, and generally provide investors with the possibility of obtaining higher returns.

2) It can enhance the liquidity and flexibility of investment, which is conducive to the transfer of investors' share capital, so that investors can realize and recover investment funds at any time. The formation, improvement and development of the market provides favorable conditions for the liquidity and flexibility of investment.

Although the company is profitable, it does not pay dividends due to corporate development or other circumstances.

Profit distribution refers to the distribution of the net profit realized by an enterprise between enterprises and investors in accordance with the distribution form and distribution order stipulated by the state financial system.

The process and result of profit distribution is an important issue related to whether the legitimate rights and interests of the owners can be protected and whether the enterprise can develop in a long-term and stable manner. The main body of enterprise profit distribution is investors and enterprises, and the object of profit distribution is the net profit realized by enterprises; The time of profit distribution, that is, the time when the profit distribution is confirmed, is the time when the profit distribution obligation occurs and the time when the enterprise makes a decision to distribute profits from the inside out.

Our company is a private ****, profitable for two consecutive years, with a certain profit but not distributed. The purpose is to accumulate funds for the expansion of reproduction, I wonder if it is allowed in policy? - Allowed.

Let's say it goes on for a few years, and then invest in other projects when there is abundant capital? - Yes.

Is there a time limit for the policy? - There are no restrictions.

What taxes do you have to pay then? - When retained earnings are converted into capital or dividends. Individual shareholders are subject to individual income tax. Businesses do not have to pay additional taxes.

Undistributed profit is the undistributed profit of the enterprise. Undistributed profit is the profit that the business retains for distribution or to be distributed in subsequent years. It can continue to be distributed in subsequent years and is part of the owner's equity until the distribution is made.

From a quantitative point of view, the undistributed profit is the balance of the undistributed profit at the beginning of the period plus the net profit realized in the current period, minus the various surplus reserves withdrawn and the profits ceded.

The order in which the total profits realized by the enterprise in the current year are distributed.

1. Make up for the losses of previous years.

2. Pay income tax.

3. Withdraw the statutory surplus reserve and public welfare fund.

4. Withdraw any surplus reserve.

5. Distribution of dividends on preferred shares.

6. Distribution of dividends on common shares.

The last thing that remains is the year-end undistributed profit.

Summary of the knowledge points in the chapters of the primary accounting title exam, I wish you easy to obtain evidence.

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Undistributed profit refers to the profit of the enterprise after the net profit realized by the enterprise has been retained in the enterprise after making up for the loss, withdrawing the surplus reserve and distributing the profit to investors. Undistributed profits have two meanings: one is the profit that is left for disposal in the following years; The second is the profit for which a specific purpose is not specified.

Relative to the rest of the owner's equity, the business has greater autonomy over the use of undistributed profits. The total profit realized by the enterprise in the current year can be distributed in the following order: 1

to make up for losses in previous years; 2.Pay income tax 3Withdrawal of statutory surplus provident fund; 4.

Withdraw any surplus reserve; 5.distribution of dividends on preferred shares; 6.Distribution of dividends on common stock.

The last thing that remains is the year-end undistributed profit. The substantive test procedures for undistributed profits generally include: 1. Check whether the profit distribution ratio complies with the provisions of the contract, agreement, articles of association, and the minutes of the board of directors, and whether the amount of profit distribution and the amount of annual undistributed profits are correct.

2. According to the audit results, the profit and loss of the year will be adjusted, and the undistributed profit will be directly increased or decreased, and the adjusted undistributed profit will be determined. 3. Check whether the undistributed profits have been properly disclosed on the balance sheet.

What is the undistributed profit of the enterprise Conceptually speaking, the undistributed profit is the undistributed profit of the enterprise, which can continue to be distributed in the following years, and is a part of the owner's equity before the distribution. From a quantitative point of view, the undistributed profit of an enterprise is the balance of the undistributed profit at the beginning of the period plus the net profit realized in the current period, minus the various surplus reserves withdrawn and the profits ced. After paying the income tax, the total profit realized by the enterprise in the current year can be distributed in the following order:

1. Make up for the losses of previous years. 2. Withdraw the statutory surplus reserve; 3. Withdraw any surplus reserve; 4. Distribution of dividends on preferred shares; 5. Distribution of dividends on common shares. The last thing that remains is the year-end undistributed profit. If the "undistributed profit" in the company's financial statement is negative, it means that the company has accumulated uncovered losses.

Therefore, the "undistributed profits" mentioned in the lower part of this article are all positive, that is, the company is profitable. So, why do listed companies have huge amounts of "undistributed profits" in their statements, but rarely pay dividends? In fact, the reason is very simple, if a company wants to pay dividends, it must have money.

The undistributed profit is only the amount on the books, and does not mean that the enterprise is really rich. So, what exactly is undistributed profit? To figure out undistributed profits, you must first understand what profits are.

In a sense, profit is only a ** value, and even accountants don't know whether it's accurate. In fact, profit is not a specific thing, in addition to cash profit, it also has three forms of expression: 1. Accrued profit:

It is the profit formed by accounts receivable; 2. Holding profits: that is, profits formed by positive fluctuations in the value of assets measured at fair value; 3. Virtual profits: It is the profits formed through debt restructuring.

At present, only cash profits are related to cash, and the other three forms of profits can be distributed when they have not received cash, but they cannot be used for dividends. Therefore, if the company has huge profits, whether it can distribute dividends depends on its composition. If undistributed profits are formed through increases in unpaid items such as accounts receivable, notes receivable, trading financial assets (fair value changes) and investment real estate (fair value changes), which have not yet received cash, these undistributed profits are unreliable and cannot be used to distribute dividends because they are not real money**.

Article 14 of the Company Law A company may establish a branch office. To establish a branch, it is necessary to apply for registration with the company registration authority and obtain a business license. A branch office does not have legal personality, and its civil liability is borne by the company.

A company may establish a subsidiary, which has the status of a legal person and independently bears civil liability in accordance with the law.

Q1: What is undistributed profit?

Q2: What does undistributed profit mean?

Undistributed profit refers to net profit that has not been distributed. It has two meanings: one is that this part of the net profit is not distributed to the insurance company's investors, and the other is that this part of the net profit is not earmarked.

The balance of the "Undistributed Profit" detailed account reflects the accumulated undistributed profit or accumulated uncovered loss of the insurance company. Due to various reasons, such as balancing the level of investment returns in each fiscal year, making up for the losses with abundance, leaving room for improvement, etc., the net profit realized by the insurance company is not fully divided, and the remaining part is reserved for distribution in the following years. In this way, the balance is accumulated year by year, and the balance is on the "undistributed profit" detail account, which reflects the accumulated undistributed profit over the years.

In the same way, the uncovered losses in the previous year are left to be made up in the following years, and the losses incurred in the following years continue to roll over, and the balance is in the "undistributed profits" detailed account, which reflects the accumulated losses over the years.