Pre-acquisition dividend

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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?? 

Replies (12)
Pre acquisition dividend does not exist..
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.
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.
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.
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.
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 .
The above post is superfluous..



admin he has got crank...
@ Admin
Please review and moderate posts by above chap. Flickering replies. Fumbling to defend !!

-------
Either u do not understand...
no one is jumping..
it's your flickering replies.
What happened to above Chap after 6 days ?
Where were you ? Anything serious ? All will be well. Ok
What happened to this crank person?
anything serious.
all is well..
Great pasting job !!!


CCI Pro

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