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Can a private company declared dividend out of current years profit and loss account though it has carry forward loss in profit and loss account?
Dividend declaration and dividend payments are two different things. Anyways, the preliminary dividend decision lies on the company's current year performance(profit after tax) or previous years accumulated reserves/profits. Well in this case, the company has suffered loss in the past year(s). So if in your case, if the company has earned profit(cash profits to settle dividend obligation) in the current year it may declare and pay off the dividends irrespective of previous year loss. This previous year loss can be settled against any current year's balance or future profits, depends on certain number of years to be carried forward/backward(tax issue). Obviously, if it is loss making business the company should either restructure, divert or wind-up its activities. There are also taxation issues relating to such carried forward loss known in tax terms "tax loss".
What else can I help you with?
Why isn't stock dividend distributable a current liability?
Because the dividend is only available for distribution; It has not been declared.
Is proposed dividend a current liability or current asset?
Proposed dividends are considered a current liability. Once a company's board of directors declares a dividend, it becomes a legal obligation for the company to pay that amount to shareholders, typically within the next accounting period. This obligation is recorded on the balance sheet as a liability until the dividend is paid.
How do you recognize account payable?
Account payable is an account that is a Liability (current). When a person or company owes another company money on account, that is an account payable.
Is unclaimed dividend a current liability?
true its a current laibilitity
Is discount on bonds payable a current liability?
Dividend is the part of shareholder, if a company start dividend can not be stopped. We can say it is the profitable part of business, which distribute among the shareholder. It may be less or more.of course it is a current liability ,This is a specific type of accrued expense -- the income tax a company accrues over the year, but does not have to pay yet, according to various federal, state.
What is Dividend?
Section 2(35) of the Companies Act, 2013 defines the word ‘Dividend’ as ‘including any interim dividend’. In easy terms, it can be defined as the portion of profits that are distributed by the Company amongst its shareholders. It can be paid to Equity shareholders as well as preference shareholders. If the dividend is declared in between a Financial Year or before Annual General Meeting (AGM) has been called, it shall be considered as an Interim Dividend. If the dividend is declared in the AGM, it shall be called the Final Dividend. In case the company has incurred losses during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, the rate of interim dividend to be declared shall not be more than the average dividends declared by the company during the last 3 financial years.
Why isn't stock dividend distributable a current liability?
Because the dividend is only available for distribution; It has not been declared.
Are dividends payable an expense or owner equity?
Dividend payable are from current year's net income portion it is liability of business as soon as dividend declared.
Is proposed dividend a current liability or current asset?
Proposed dividends are considered a current liability. Once a company's board of directors declares a dividend, it becomes a legal obligation for the company to pay that amount to shareholders, typically within the next accounting period. This obligation is recorded on the balance sheet as a liability until the dividend is paid.
What is dividend distribution tax?
Dividend distribution tax is the tax levied by the Indian Government on companies according to the dividend paid to a company's investors. As per existing tax provisions, income from dividends is tax free in the hands of the investor. There is a levy of 15% of the dividend declared as distribution tax. This tax is paid out of the profits/reserves of the company declaring the dividend.  The provisions of this Section applies to a domestic company for any assessment year, on an amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise)  The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier.  The said dividend distribution tax is in addition to the income tax chargeable on the total income of the Company and the same shall be payable @15% and the same shall be increased by Surcharge @10%, and such aggregate of tax and surcharge shall be further increased by an Education cess @2% and higher education cess 1% .  The Section applies to dividend payments made either out of current or accumulated profits.  The dividend so paid will be eligible for exemption for the shareholders under Section 10(34).  The Dividend Distribution Tax is payable by a Domestic Company even if no income-tax is payable on its total income.
What happens when a company Declares Quarterly Dividend?
It means that the company would share its profit with its share holders once every 3 months of the year. The Dividend % is decided based on the profits made by the company during the current fiscal quarter. Let us say a company has a face value of Rs. 10/- and decides to declare a dividend of 25% it means that for every share you hold in that company you will get Rs. 2.5/- as dividend.
What is dividends tax?
Dividend distribution tax is the tax levied by the Indian Government on companies according to the dividend paid to a company's investors. As per existing tax provisions, income from dividends is tax free in the hands of the investor. There is a levy of 15% of the dividend declared as distribution tax. This tax is paid out of the profits/reserves of the company declaring the dividend.  The provisions of this Section applies to a domestic company for any assessment year, on an amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise)  The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier.  The said dividend distribution tax is in addition to the income tax chargeable on the total income of the Company and the same shall be payable @15% and the same shall be increased by Surcharge @10%, and such aggregate of tax and surcharge shall be further increased by an Education cess @2% and higher education cess 1% .  The Section applies to dividend payments made either out of current or accumulated profits.  The dividend so paid will be eligible for exemption for the shareholders under Section 10(34).  The Dividend Distribution Tax is payable by a Domestic Company even if no income-tax is payable on its total income.
How do you recognize account payable?
Account payable is an account that is a Liability (current). When a person or company owes another company money on account, that is an account payable.
Does payment of dividends reduce stockholders equity?
Answer:Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not pay out as a dividend (hence: "retained"). Retained earnings therefore increases with earnings, but decreases with dividends, since dividend is a distribution of earnings to the shareholders.
The shawnee company paid a dividend of 0.42 per share last year if the current selling price of the stock is 27.38 what is the current yield on the stock?
1.5%
What is Dividend Yield?
The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.
Does dividend reduce profits?
When a corporation declares and pays a dividend, the dividend does not reduce the current accounting period's profit reported on the income statement. In other words, a dividend is not an expense.Dividends will reduce the amount of the corporation's retained earnings. Retained earnings are reported in the stockholders' equity section of the balance sheet.If a corporation has very profitable uses for its cash, its future profits might be less if it pays dividends instead of reinvesting the cash dividend amounts into profitable projects.
