Bonus issue

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tadhagata

tadhagata (Querist)
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10 October 2013 what do you mean by free reserves and what all reserves are included in free reserves?

Sanket

Sanket (Expert)
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10 October 2013 As per Sub-Clause (43) of clause 2 of the
Companies Bill 2012 free reserves means such
reserves which, as per the latest audited
balance sheet of a company, are available for
distribution as dividend:
Provided that
(i) any amount representing unrealised gains,
notional gains or revaluation of assets, whether
shown as a reserve or otherwise, or
(ii) any change in carrying amount of an asset or
of a liability recognised in equity, including
surplus in profit and loss account on
measurement of the asset or the liability at fair
value, shall not be treated as free reserves;