Restricted retained earnings must be disclosed on the balance sheet or the statement of changes in equity,or in the notes to the financial statements.

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Restricted retained earnings are a specific category of equity that needs to be disclosed on the financial statements, either on the balance sheet, the statement of changes in equity, or in the notes to the financial statements. This is because restricted retained earnings represent a portion of the company's equity that is not available for distribution to shareholders, as it is subject to certain restrictions or commitments. Disclosing these items is necessary to provide investors and stakeholders with a complete and transparent picture of the company's financial position and performance.

Restricted Retained Earnings Must Be Disclosed on the Balance Sheet