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Type your answer here... Free reserves are those reserve which are not made for particular reason.it is freely available for distribution of the dividends.
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Free reserves under S372A of the companies Act 1956 whether includes capital reserves?
No, Capital reserves cannot be part of free reserves under S372A of Companies Act 1956.
Is reserves in a balance sheet a current liability?
No reserves s part of the capital of the company. Reserves are funds help back by the company to do other things in the furture. It is not a current liability.
How do you calculate the statutory reserve of a company?
what are the statutory reserves of a company?
What does the phrase tax your reserves mean?
The phrase "tax your reserves" means to use reserve funds to conduct the business instead of saving them for possible business expansion. When a company uses up its reserves there is a good chance the company will then become insolvent.
Can a company issue free shares?
Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!
Free reserves per share?
It is cash component (cash, debtors, advances and current assets) per share that is available with the company after excluding its fixed asset and inventory etc..
Why is it important to categorise the reserves of the subsidiary company into pre-acquisition reserves and post-acquisition reserves for purpose of consolidation?
pre or post acquisition id made w.r.t date of acqn
What is difference between legal and statutory reserves?
Answer: legal and statutory reserves There is no difference. Both legal and statutory reserves are reserves that must be maintained by law. The previous answer ("Legal reserves are stipulated by law, while statutory reserves are determined in the Articles of Association (the Statute of a company)") is incorrect: the primary meaning of 'statutes' is 'enacted laws'
What circumstance are bonus shares issued in a company?
When company is in short of money and they have amount available in the form of reserves then company issues the bonus shares and uses the reserves as a working capital to run day to day business or use for investment opportunities.
Do you have to have your house inspected to get homeowners insurance?
The insurance company reserves that right.
Where and under which heading is the unclaimed dividend disclosed in the balance sheet of the company?
reserves surplus
What are the funds out of which a company can purchase it own share?
Section 77A read with Section 77B(2)permits a company to buy its own shares or other securities out of:-(i) its free reserves.(ii) the securities premium account.(iii) the proceeds of any shares or other specified securities.
