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Preference dividend

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Preference dividend

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 8, 2018 at 1:28 am #457678
    madni141
    Member
    • Topics: 27
    • Replies: 16
    • ☆

    Is it compulsory to pay preference dividend on profits or the payment of preference dividends depends on management discretion(so the management does not pay any preference dividend despite profits)?

    June 8, 2018 at 8:51 am #457733
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    Provided there is enough profit, the fixed preference dividend has to be paid (before any ordinary dividend is paid).

    June 9, 2018 at 12:12 am #458001
    madni141
    Member
    • Topics: 27
    • Replies: 16
    • ☆

    If a company has earned profits but does not want to pay preference dividend, is the company allowed to do so or preference dividend has to be paid at any cost no matter what?

    June 9, 2018 at 4:26 pm #458118
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    I have already answered this in my previous post – the preference dividend has to be paid (it is not a choice).

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Preference dividend’ is closed to new replies.

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