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June 18, 2020 at 5:23 pm
I think there is some mistake in Q>3 we can pay bonus shares from sec prem acc what is the reason behind that help me ?
June 18, 2020 at 7:49 pm
We cannot ‘pay’ bonus shares …
What we CAN do is finance the issue of fully paid bonus shares to existing members
The question asks about distributable reserves
The capital redemption reserve and the share premium account are the two BIG statutory capital reserves and are not distributable
But the statutory definition of non-distributable reserves includes (in its abbreviated format) ‘accumulated unrealised profits less accumulated unrealised losses’ … and clearly that includes a ‘revaluation reserve’
February 25, 2019 at 12:26 pm
ahhhh okay, thanks!
February 25, 2019 at 10:12 am
Q4, which of the following is not an allowable use of the share premium account? I was under the impression that share premium accounts allow for the issue of bonus shares. Apparently, my impression was wrong, but I don’t get why. Could you give me a hint? Cheers, Fran.
February 25, 2019 at 11:02 am
Here’s a hint: credited as 95 pence paid
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