Retained profit = Net profit after tax – Dividends paid
Retained profit = Opening retained earnings + Net profit after tax – Dividends paid
Retained profit = Closing retained earnings
Net profit after tax = Revenue – Expenses – Tax
If no dividends are paid, retained profit equals net profit after tax
If calculating change in retained profit, use Closing retained earnings – Opening retained earnings
Include any prior-period adjustments if applicable
Use the profit after tax figure from the income statement
Subtract all dividends declared or paid during the period
Add any other transfers to retained earnings if applicable