10.8.4 Retained earnings

Retained earnings comprise capital reserves created and used in accordance with the rules stipulated by the applicable laws and deeds of incorporation, as well as current period’s profit.

Retained earnings also include actuarial gains/losses relating to defined post-employment benefits, recognised inclusive of the tax effect, which are disclosed in the statement of comprehensive income in the line item Other comprehensive income/(loss), net.

As at December 31st 2021 and December 31st 2020, Grupa LOTOS S.A. was restricted in its ability to distribute dividends; see Note 10.8.4.1.