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Q: Can capital reserve use for distribution of dividend?
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Related questions

Can revaluation reserve be use for bonus issue?

Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...


Can a CDN corporation apply non capital losses against dividend income?

A CDN corporation can not apply non capital losses against dividend income it can only be used to reduce capital gain. There are rules and regulations that go along with this as well. You can not use capital gain to offset normal income.


Can you use revaluation reserve to issue share capital?

yes, for a bonus issue


Can share premium be use to distribute as dividend?

no ,securities premium not used as a dividend


What is capital mooting?

Well, mooting means to bring up, introduce, discuss and debate. So one would assume capital mooting is dicussing issues surrounding the use and distribution of capital.


Can you use capital loss to offset dividend income?

ANSWER No capital loss can only be used to reduce any capital gain, and even in then there are rules. You can not use capital gain to offset against ordinary income. NB: Personal use capital loss can not be offset against any capital gain, losses on collectibles can only be offset against other collectibles capital gain and all "other" capital loss e.g. dividends, shares, real estate can be offset against "other" capital gain.


What is the accounting treatment of capital reserve?

Capital reserve: Capital reserve represents surpluses or profit in respect of certain type of transaction: example, on scale of a fixed assets at a price in excess of cost,realisation of profit on issue of fortified shares etc. it is a reserve, which doesn't include any amount regarded as free for distribution through the profit and loss account. It includes share premium, capital redemption reserve , development rebate reserve . profits on reissue or fortified shares it also includes any grants received from central or state government or other assets gifted by central or state governments free of cost are nationally valued and credited to capital reserve. a) Grant-in -aid from the government of India . b) Grant-in aid from others. Government grants defined: government grants are assistance by governments in the form of transfer of resources to an enterprise in return for the past and future compliance with certain conditions relating to the operating activities of the enterprise. Non - monetary government grants: the non -monetary government grants may be in the shape of free land or other resources for the use of the company. The capital reserve may be utilized in the following manner: a) To utilized for writing down fictitious assets or losses (subject to provision in the articles) or for issuing bonus shares. But the amount of share premium or capital redemption reserve account can be utilized only for the purpose specified in section 78 and 80 respectively of the companies act. b) To write -off capital losses on transfer of assets received free of cost or assets acquired out of grant, which had been accounted for under capital reserve.


What is difference between Cash dividend and share repurchase?

A cash dividend is a distribution of money from a company's profits to its shareholders on a per-share basis. Shareholders receive the dividend in cash, which they can choose to reinvest or use as they wish. On the other hand, share repurchase is when a company buys back its own shares from the market, reducing the number of outstanding shares. This can increase the value of the remaining shares, as well as potentially benefit shareholders through capital gains if they choose to sell their shares back to the company.


How can I add my finances to my dividend calendar?

The use of mint.com is a great tool to incorporate the dividend calendar into your finances. The dividend calendar shows how much your stocks are making you.


Numder use to divide a number?

dividend


What is the definition of Commercial Distribution?

The definition of commercial distribution is USE Economic distribution. It is any distribution of human drugs with the exception of the use for investigational use. The term refers to distribution of devices meant for human use.


What is Residual dividend pliocy?

What is the "residual dividend model"?n Find the retained earnings needed for the capital budget.n Pay out any leftover earnings (the residual) as dividends.n This policy minimizes flotation and equity signaling costs, hence minimizes the WACC.Residual dividend modeln Capital budget - $800,000n Target capital structure - 40% debt, 60% equityn Forecasted net income - $600,000n How much of the forecasted net income should be paid out as dividends?Residual dividend model: Calculating dividends paidn Calculate portion of capital budget to be funded by equity.n Of the $800,000 capital budget, 0.6($800,000) $480,000 will be funded with equity. n Calculate excess or need for equity capital.n With net income of $600,000, there is more than enough equity to fund the capital budget. There will be $600,000 - $480,000 $120,000 left over to pay as dividends. n Calculate dividend payout ration $120,000 / $600,000 0.20 20% Residual dividend model: _What_if_net_income_drops_to_$400,000?_Rises_to_$800,000?"> What if net income drops to $400,000? Rises to $800,000? n If NI $400,000 … n Dividends $400,000 - (0.6)($800,000) -$80,000.n Since the dividend results in a negative number, the firm must use all of its net income to fund its budget, and probably should issue equity to maintain its target capital structure.n Payout $0 / $400,000 0% n If NI $800,000 …n Dividends $800,000 - (0.6)($800,000) $320,000.n Payout $320,000 / $800,000 40%