plz any one tell me what is preaquisition dividend and post aquisition dividend in investment accounts how can we recognise in the given problem and what is the accounting treatement....
thank in advanceeee...
1 Replies
vijeesh V R
(CA Final)
(91 Points)
Replied 30 March 2012
dividend pertains to the period before the investment was made, then it is referred as PRE-ACQUISITION DIVIDEND
It is capital profit.
Post aquisition is Revenue in Nature that we are getting divident after the investment.
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