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CONCEPT OF PRE ACQUISITION DIVIDEND

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)

08 October 2010

This is in continuation of discussion in one of the forum, i am hereby explaining the concept of pre acquisition dividend.

this is what i understood about the said topic. people may give / add their views also.

Thank you!

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5 Replies

C.A. LINESH PATIL (CA) (910 Points)
Replied 08 October 2010

yes i am agree with what you said.

but in my opinion if you have great access to company books of accounts and you have idea from which profit dividend has been declared then you may bifurcate pre and post acquisition dividend on the based of source of declaration of dividend.

say if dividend is declared out of post acquisition profit then its post acquisition dividend.or vice a versa.

for example this can be done in case of H&S relationship

but this much of great access to any company books of accounts every one cant have thats why we try to make distinguish between pre and post acquisition profit on the basis of time of acquisition.

.i am also a student.might not be fully right plz make me correct if i am wrong

Thanks