Inclusion of Provision for Dividend in free reserve
Ayush Verma (21 Points)
03 September 2019
Can the provision for payment of dividend be included in the definition free reserve ?
2 Replies
ABHISHEK
(Student)
(412 Points)
Replied 04 September 2019
proposed dividend once declared in gm become liability.
prop div shall be included in free reserve but the declared divident
prop div shall be included in free reserve but the declared divident
Ayush Verma
(21 Points)
Replied 15 September 2019
But once it becomes the liability towards Shareholders then how can the company use it as a free reserve ?
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