Accumulated Profits/Losses

Originally posted by : Devendra
	What do you mean by Accumulated Profits/Losses?   Regards, Devendra

 Accumulated profit refers to retained earning i.e the earning which has not been distributed to shareholders and kept as part of Reserve.

1. Security Premium is not accumulated profit
2. Accumulated Profit is to be taken upto the date of disctribution. However for sec. 2(22)(c) of Income Tax Act profit upto the date of liquidation is taken.