Post acquisition dividend

AS 2066 views 2 replies

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

Replies (2)

though it is pertaining to the year 2008-09.,.. is there any change if it is interim dividend

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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