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what is the meaning of pre acquasition profit?? I read it in Para 12 of AS13
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Profits prior to date of acqusition (investment) are pre acquisition profits, It will reduce the cost of investment.
Generally dividend amount will be reduced from the cost of investment in the following two cases
1. when the investments are purchased on cum dividend basis.
2. when the dividend is declared out of pre acquisition profits.
Generally dividend amount will be reduced from the cost of investment in the following two cases
1. when the investments are purchased on cum dividend basis.
2. when the dividend is declared out of pre acquisition profits.
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