- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Salauddin- Topics: 9
- Replies: 2
- ☆
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?Thanks,
Kazi SalauddinJohn Moffat- Topics: 56
- Replies: 41724
- ☆☆☆☆☆
IFRS’s are not relevant for Paper F9.
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,
Salauddin
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.