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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Bonus Issue
Dear sir,
Is there any specific order to use the reserves for Bonus Issue?
Like 1) Dr Share Premium
2) Dr revaluation
3)Dr revenue reserves
Sorry for disturbing u again n again..
You should use the capital reserves first (i.e. share premium and revaluation reserve) and only if they are down to zero then use revenue reserves.
(The reason being that using revenue reserves reduces the maximum dividend that can ever be paid)
Got it. Thankyou very much
You are welcome 🙂