Pre-acquisition dividend

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Student
552 Points Posted on 02 March 2020

We subtract preacquisition dividend (equity)  from both investment and simultaneously p&l doesn't it nullify the effect of dividend totally.. . Please explain. .. 

 

 

 

And also we add dividend receivable of preference shares to p&l is this not against fundamental accounting concept prudence?? 

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On 02 March 2020 at 22:38 Report
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Quick Summary
This discussion delves into the accounting treatment of pre-acquisition dividends. Participants question whether subtracting these dividends from both investment and P&L effectively nullifies their impact. The conversation also touches upon adding preference share dividend receivables to P&L and its potential conflict with the prudence concept. Clarification is sought regarding the existence and treatment of pre-acquisition profits versus reserves.

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Profession
19978 Points Posted on 04 March 2020
Pre acquisition dividend does not exist..
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On 04 March 2020 at 22:10
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10683 Points Posted on 04 March 2020
Pre acquisition dividend is the dividend received out of  pre-acquisition profits. 

Pre-acquisition profits are the reserves which exist in a subsidiary company at the date when it is acquired.

Post-acquisition profits are profits made and included in the retained earnings of the subsidiary company since acquisition

This is within fundamental accounting Prudential concept.
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On 04 March 2020 at 22:59
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19978 Points Posted on 05 March 2020
Pre acquisition profit is there.Interm Dividend is there. Any pre acquisition profit can be divided among existing shareholders/stakeholders.
Now a company cannot raise an IPO within few months of incorporation.
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On 05 March 2020 at 08:06
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10683 Points Posted on 05 March 2020
Again what that Chap wrote in above post ??

Has anyone understood !!
If yes please re-explain..

Is that reply of Query ?

@ Admin
Please moderate his Posts.
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On 05 March 2020 at 17:53
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19978 Points Posted on 05 March 2020
There is no accounting concept..

1. pre acquisition profit exists in a subsidiary company ...
who told u?


you are absolutely wrong...


reserves exist in every company.
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On 05 March 2020 at 18:17
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10683 Points Posted on 06 March 2020
The above post chap has now started to reply blindly.

Please double read previous replies and then jump.

@ Admin,
Please moderate posts by that Chap .
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On 06 March 2020 at 00:40
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19978 Points Posted on 06 March 2020
The above post is superfluous..



admin he has got crank...
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On 06 March 2020 at 08:21
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10683 Points Posted on 06 March 2020
@ Admin
Please review and moderate posts by above chap. Flickering replies. Fumbling to defend !!

-------
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On 06 March 2020 at 13:20
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19978 Points Posted on 12 March 2020
Either u do not understand...
no one is jumping..
it's your flickering replies.
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On 12 March 2020 at 07:36
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10683 Points Posted on 12 March 2020
What happened to above Chap after 6 days ?
Where were you ? Anything serious ? All will be well. Ok
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On 12 March 2020 at 11:15
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Profession
19978 Points Posted on 12 March 2020
What happened to this crank person?
anything serious.
all is well..
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On 12 March 2020 at 11:19
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10683 Points Posted on 12 March 2020
Great pasting job !!!
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On 12 March 2020 at 11:29

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