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Capital reserves typically cannot be used for the distribution of dividends, as they are funds set aside for specific purposes, such as future investments or to cover potential losses. Dividends can usually only be paid from profits or retained earnings. However, in some jurisdictions, certain types of capital reserves may be converted into distributable reserves if approved by shareholders. Always consult relevant laws and regulations for specific guidelines.
What else can I help you with?
Can share premium be use to distribute as dividend?
no ,securities premium not used as a dividend
The quotient 18 is 5find the number?
You can use the equation: quotient x divisor = dividend In case there is a remainder, the formula is: quitient x divisor + remainder = dividend
When do you use nomial distribution?
Never, because there is no such distribution.
When the quotient is 8 the divisor is 4 and the remainder is 3 the dividend is?
Oh, isn't that just a happy little math problem? When the quotient is 8, the divisor is 4, and the remainder is 3, we can use the formula: Dividend = (Divisor x Quotient) + Remainder. So, the dividend would be (4 x 8) + 3, which equals 35. Just like painting a beautiful landscape, math can be a peaceful and joyful experience.
What happens when you use the dividend quotient as your guide?
When you use the dividend quotient as your guide, you focus on the relationship between dividends and earnings, which helps investors assess a company's profitability and financial health. This approach allows for evaluating the sustainability of dividend payments and identifying potential growth opportunities. By emphasizing the dividend quotient, investors can make more informed decisions about income generation and overall investment strategy. However, it's essential to consider other financial metrics for a comprehensive analysis.
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
What is the use of capital redemption reserve?
A capital redemption reserve is a reserve created by a company to hold funds that are set aside for the purpose of redeeming or buying back its own shares. This reserve is typically established when a company repurchases its shares or when it reduces its share capital, ensuring that the company's capital remains intact and that shareholders are protected. The funds in this reserve cannot be distributed as dividends, as they are meant to maintain financial stability and comply with legal requirements regarding capital maintenance. Overall, it serves to enhance shareholder confidence and reinforce the company's financial structure.
Can capital reserve be transferred to profit and loss account?
No, capital reserves cannot be transferred to the profit and loss account. Capital reserves are typically created from specific transactions, such as the revaluation of assets or the issuance of shares at a premium, and are intended for long-term use within the company. They are not available for distribution as dividends, unlike profits generated from normal business operations that flow into the profit and loss account.
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.
Can share premium be use to distribute as dividend?
no ,securities premium not used as a dividend
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 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.
Is General Reserve is Free Reserve?
No, a general reserve is not considered a free reserve. General reserves are created by setting aside a portion of profits for specific purposes, such as future contingencies or expansion, and are not typically available for distribution as dividends. Free reserves, on the other hand, refer to profits that are not earmarked for any specific use and can be distributed to shareholders.
What is difference between Cash dividend and share repurchase?
With a cash dividend, you receive the amount of money that relates to the number of shares you hold when a dividend is declared at the companys AGM (ie if a dividend of 10cent per share is called & you have 10 shares you will receive €1) However you could have the option of not receiving the cash but instead using it to purchase more shares in the company.
What is the formula for calculating the monthly dividend for Realty Income using a realty income monthly dividend calculator?
The formula for calculating the monthly dividend for Realty Income is: Monthly Dividend Annual Dividend / 12. You can use a Realty Income monthly dividend calculator to easily determine the amount.
