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What are non-distributable reserves?

Non-distributable reserves are those shareholders' funds which cannot be distributed to shareholders in the form of dividends. They are recorded in a company's financial statements as share capital (the face value of shares issued), share premium (the excess of the issue price over the shares' face value) and other items such as revaluations of assets and some foreign exchange movements. Distributable reserves are those resulting from accumulated profits made by the company.


What are-distributable reserves?

Non-distributable reserves are those shareholders' funds which cannot be distributed to shareholders in the form of dividends. They are recorded in a company's financial statements as share capital (the face value of shares issued), share premium (the excess of the issue price over the shares' face value) and other items such as revaluations of assets and some foreign exchange movements. Distributable reserves are those resulting from accumulated profits made by the company.


What are distributal reserves?

Non-distributable reserves are those shareholders' funds which cannot be distributed to shareholders in the form of dividends. They are recorded in a company's financial statements as share capital (the face value of shares issued), share premium (the excess of the issue price over the shares' face value) and other items such as revaluations of assets and some foreign exchange movements. Distributable reserves are those resulting from accumulated profits made by the company.


What is a distributable reserve?

A non-distributable reserve is one which is not available for distribution to shareholders as a dividend.


What is a non-distributable reserve?

A non-distributable reserve is one which is not available for distribution to shareholders as a dividend.


What is capital redemption reserves?

Capital Redemption Revere is an reserve created when a company buys it owns shares which reduces its share capital. This reserve is not distributable to shareholders and can be used to pay bonus shared issued.


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!


Is there more known coal reserves in Illinois than oil reserves?

No, there are more known oil reserves in Illinois than coal reserves. Illinois has significant crude oil reserves, particularly in the southern part of the state, while its coal reserves have decreased due to mining activities.


How do banks create money with fractional reserves?

because


What is distributable income?

Distributable cash flow is a theoretical number. It is not an actual cash flow. = earnings + non cash expenses +/- change in non-cash WC. To get Distributable cash flow, you can also start from EBITDA and subtract charges such as interest expenses, and income taxes.


Can capital reserve use for distribution of dividend?

Capital reserves typically cannot be used for the distribution of dividends, as they are funds set aside for specific purposes, such as future investments or to cover potential losses. Dividends can usually only be paid from profits or retained earnings. However, in some jurisdictions, certain types of capital reserves may be converted into distributable reserves if approved by shareholders. Always consult relevant laws and regulations for specific guidelines.


Can a company pay a dividend from the asset revaluation or realization reserves?

A company generally cannot pay dividends from asset revaluation reserves as these reserves are not considered distributable profits. Dividends must typically be paid from retained earnings or profits generated from the company's operations. Realization reserves, which arise from the sale of assets, can sometimes be distributed as dividends, but this depends on the specific legal and accounting regulations applicable in the company's jurisdiction. It's essential for companies to consult with legal and financial advisors to ensure compliance with relevant laws.