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MichaelT21 (Arkansas)
Posts: 462
Posted:
The other thread about the balance sheet caused me to create my own post.

In our balance sheet, which we are sending out to all homeowners, there are two categories I do not understand:

The first is "current year earnings" which shows a massively negative number.

The second is "association equity" which is a huge positive number.

Combined, the +assoication equity added to the -current year earnings just happens to equal exactly the current assets.

I've attached our current balance sheet. Any explanations would be helpful.
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📄1111232034271.pdf(145 KB)
MaxB4
Posts: 3,513
Posted:
Current year earning is net income, plus or minus from the current year. The figure comes from the income/expense statement on a monthly basis.

Association equity is retained earnings, which is accumulated income, year over year, plus or minus, since the inception of the association.

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