Dear Sir, a company have cumulative Loss for last three years . But the Board of Directors wants to declare stock dividend from the current two years profit. total age of the company is five years.
whether it is possible to do that ? Can u please share any reference to understand clearly about this issue , IFRS or anything else?
If they have revenue reserves (total retained earnings – i.e the total profits less the total losses for the whole five years) ) then they are allowed to pay a dividend up to the amount of the revenue reserves,