The directors of a company are considering the use of a large balance in the Share premium
Question:
The directors of a company are considering the use of a large balance in the Share premium account for the purposes listed below. Which among these planned actions is/are not legally permitted?
(a) Write off accumulated losses of prior years
(b) Write down the value of non-current assets to their recoverable amounts
(c) Distribute as dividends
(d) Cancel the calls yet to be made on the shareholders in respect of shares issued
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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