Pre-acquisition dividends, Financial Accounting

Assignment Help:

Pre-acquisition dividends

Pre-acquisition dividends may also arise in the following situations;

1) Where the holding company acquires the subsidiary company’s shares cum-dividend and thus dividends eventually received will all be pre-acquisition.

2) If the subsidiary company makes post-acquisition losses, and pays out dividends then this dividends are assumed share come out of the pre-acquisition profits and are thus pre-acquisitioned.


Related Discussions:- Pre-acquisition dividends

Present value of an uneven series, In actual life cash flows occurring abov...

In actual life cash flows occurring above a period of time are frequently uneven. For illustration, the dividends declared through the companies will change from year to year, as s

Redemption of debt, Q. Redemption of debt? Equity finance is permanent ...

Q. Redemption of debt? Equity finance is permanent capital that doesn't need to be redeemed while debt finance will need to be redeemed at some future date. Redeeming a huge am

Prepare journal entries to record liquidation transaction, Terry Marks is a...

Terry Marks is a well-known architect. He wants to start his own business and convinces Rob Norris, his cousin and a civil engineer, to contribute capital. Together, they form a pa

Activity cost drivers, Activity Cost Drivers An element of measurement...

Activity Cost Drivers An element of measurement for the stage (or quantity) of an activity that is performed within a business company.  Hence, a movement cost driver represen

Method of accounting for securities, Settlement Method - Method of ACCOUNTI...

Settlement Method - Method of ACCOUNTING for SECURITIES whereby transactions are recorded on the date securities settle by delivery or receipt of securities and receipt or payment

Cash budget, What is a cash budget? How it is useful in managerial decision...

What is a cash budget? How it is useful in managerial decision making?

Market value of the entire corporation, Company X is presumably doing well....

Company X is presumably doing well. The corporation's balance sheet last September 31 can be summarized as follows: Total Assets

Ratio analysis and vertical analysis, Balance Sheets: contains the balance...

Balance Sheets: contains the balance sheets as of December 31, 2010, 2009, and 2008. Accounting practice and tradition dictates that the most current year is placed nearest to the

What do you mean by grant date in stock option, Q. What do you mean by Gran...

Q. What do you mean by Grant date in Stock Option? Grant date - The date at which an employee and an employer reach a mutual understanding of key terms and conditions of a shar

The time value of money , Calculate the present value and determine the npv...

Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd