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Issue of bonus shares out of capital profit

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Asst. Manager - Finance
84 Points Posted on 28 May 2018

Can anybody advice the situations where a Company can issue bonus shares out of capital profits ?

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On 28 May 2018 at 10:40 Report
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1608
61 Points Posted on 28 May 2018
not allowed only security premium and balance of p&l is permitted
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On 28 May 2018 at 12:10
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Student
389 Points Posted on 28 May 2018
bonus issue can be made from genuine profita only which are actually earned. capital profit arises on account of profit on sale of asset and hence it can be utilised . but profit on revaluation of asset which is not actual cant be utilised .
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On 28 May 2018 at 12:23
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Company Secretary
144 Points Posted on 28 May 2018
Even securities premium account is treated as capital in nature. Correct me if I am wrong.
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On 28 May 2018 at 19:11
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Student
389 Points Posted on 28 May 2018
yes, and it is actual profit realised so it is also used for bonus issue
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On 28 May 2018 at 19:21
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audit staff
1203 Points Posted on 02 September 2018
accumulated profit take consideration for issue if bonus shares
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On 02 September 2018 at 11:56


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