18. Retained earnings

 31 December 201431 December 2013
Undistributed profit/(loss) from prior years ( 772) ( 632)
Reserve capital created in accordance with the Commercial Partnerships and Companies Code  764  720
Reserve capital created and utilised in accordance with the statutes of Group entities 19 772 17 642
Capital from valuation of the put option for employee shares ( 30) ( 47)
Profit for the period 2 450 3 035
Total retained earnings 22 184 20 718

Based on the Act of 15 September 2000 (the Commercial Partnerships and Companies Code), the Group’s joint stock companies subject to these laws are required to create reserve capital for any potential (future) or existing losses, to which no less than 8% of a given financial year’s profit is transferred until the reserve capital has been built up to no less than one-third of the registered share capital. The reserve capital created in this manner may not be employed otherwise than in covering the loss reported in the financial statements.

As at 31 December 2014, this statutory reserve capital in the Group entities amounts to PLN 764 million, of which PLN 660 million relates to the Parent Entity.