Inclusion of Provision for Dividend in free reserve

226 views 2 replies
Can the provision for payment of dividend be included in the definition free reserve ?
Replies (2)
proposed dividend once declared in gm become liability.
prop div shall be included in free reserve but the declared divident

But once it becomes the liability towards Shareholders then how can the company use it as a free reserve ?

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register