If a stake of 30% is acquired in a company on 01-06-2009 and dividend is declared on 12-08-2009..., will such dividend declared be treated as pre-acquisition dividend or post-acquisition dividend..??? kindly clarify ...thank you
ACCOUNTANT (Student) (559 Points)
22 February 2020If a stake of 30% is acquired in a company on 01-06-2009 and dividend is declared on 12-08-2009..., will such dividend declared be treated as pre-acquisition dividend or post-acquisition dividend..??? kindly clarify ...thank you
ACCOUNTANT
(Student)
(559 Points)
Replied 22 February 2020
though it is pertaining to the year 2008-09.,.. is there any change if it is interim dividend
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 22 February 2020
When the dividend is declared from pre-acquisition profits, and later on received by purchaser of investment. Dividend received out of pre-acquisition profits is referred as pre-acquisition Dividends.
Dividend received out of post-acquisition profits is referred as post-acquisition dividend. Acquisition Dividend if received should be credited to Profit & Loss Account.
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