Whats Pre-Acquisition Dividened

Page no : 3

RAMESH POLINENI (ca) (352 Points)
Replied 30 March 2017

HELLOW i am explining pre acquision dividemd please cocentrate

when i am making investment in a company where the business had completed up to the date of acquision

that is a capital receipt from investor point of view

That is in investor account we will show as investment. And in sellor point of view we are purchasing his capital

so that is up to the date of purchase there is a capital receipt.

As per the accounting role we should deduct that capital receipt from an investment only

Shikher Srivastava (2 Points)
Replied 08 May 2019

suppose u purchase shares of abc ltd in april 2015....and the company declared dividend on those shares related to the f.y 2014-15.. that dividend will be received by u coz your name is on the register...this is pre accquisition dividend which will be deducted from the cost of the investment..