What does appropriation of retained earnings mean?

appropriation of retained earnings meaning in Law Dictionary

whenever earings tend to be restricted and recorded to cut back loss. It may be voluntary or required by that loan arrangement.


appropriation of retained earnings meaning in Business Dictionary

Restriction of retained profits, recorded by a journal entry that decreases extent available for dividends. The restriction might be imposed voluntarily by the management to accumulate earnings for a certain function, or it could be as a result of a restrictive covenant in financing contract.