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This query is : Open
22 October 2012
why is dividend from pre-acquisition profits deducted from its capital's cost
CA Gopal Somani
(Expert)
23 October 2012
According to AS-13 Accounting for investment "interest has accrued before the acquisition of an interest-bearing investment and is therefore included in the price paid for the investment, the subsequent receipt of interest is allocated between pre-acquisition and
post-acquisition periods; the pre-acquisition portion is deducted from cost."
When dividends on equity are declared from pre-acquisition profits, a similar treatment may apply.
post-acquisition periods; the pre-acquisition portion is deducted from cost."
When dividends on equity are declared from pre-acquisition profits, a similar treatment may apply.
23 October 2012
and why bonus shares when sold adjusted to capital accounts (investments chapter)and why right shares are taken to p/l a/c (that part of right shares which are not availed by )
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