In relation to the payment of dividends, which of the following will be included in the profit available for distribution in a company's current financial year?
A、An increase in the asset value of a head office building that occurred during the current financial year
B、Profit on the sale of an asset sold after the end of the current financial year C
A、depreciation charge made in the current financial year D
A、premium received on the nominal value of shares issued in the current financial year
A、An increase in the asset value of a head office building that occurred during the current financial year
B、Profit on the sale of an asset sold after the end of the current financial year C
A、depreciation charge made in the current financial year D
A、premium received on the nominal value of shares issued in the current financial year
【参考答案及解析】
Depreciation in the current year is a realised loss that is included in the calculation of distributable profit. Asset revaluations are unrealised and not included. Only realised profits in the current or previous financial years are included. A premium received on issuing shares goes to the share premium account and is not included in the profits available for distribution.
Depreciation in the current year is a realised loss that is included in the calculation of distributable profit. Asset revaluations are unrealised and not included. Only realised profits in the current or previous financial years are included. A premium received on issuing shares goes to the share premium account and is not included in the profits available for distribution.