12 December 2014
Hi, I want to understand he difference in treatment of Proposed dividend, declared dividend, final and interim dividend and Dividend paid while preparing consolidated financial statements.
I have seen in some problems that while dividend paid is reduced from pre-acquisition profits(while doing analysis of profits), proposed dividend is not. However both of these are reduced from Cost of investment while preparing Cost of Control. Is my understanding correct? Can you please tell the reason for this difference in treatment.
On the similar lines I want to understand treatment for other dividends too listed above.
I have been struggling with this for a long time. Request your help.
CAclubindia
