Diference beetwen app of ret earnings in BALANCE Vs INCOME STAT

Question

Hi expert
Wich is the diference beetwen activate check in consolidation area settings
Appropriation of retained earnings
*in Balance Sheet
*in Income Statement
how it work? is there any issue if I select one or if I select other
Thanks in advance

Answer 1

Hi
ARE in the Balance Sheet
If the appropriation of retained earnings is reported in the balance sheet, no special logic applies to subsequent consolidation, since the ARE items themselves are part of the reported equity data. In a divestiture or a transfer, the adjustment to group values from the triggering equity items is also posted to the allocated ARE items.
ARE in the Income Statement
If ARE is reported in the income statement, the reclassification of minority interests is posted automatically and simultaneously within the ARE u2013 that is, within the income statement.
The entries for the statistical net income are derived from data reported for the ARE items, not from reported equity capital that affects net income.
If data from distribution of dividends items exists, the statistical net income will differ from the adjusted statistical net income, because the latter does not contain the effect from the distribution of dividends. The Distribution of Dividends activity is not reported explicitly, because the corresponding items are components of ARE in the income statement, and part of the reported equity data.
For more info searh in a SAP Help.
Best regards,
Lilia