Скачать или смотреть Cash Dividends (Partially Liquidating, Return Of Contributed Capital Vs Earned Capital, P/S & C/S)

Accounting for liquidating dividends as a return of stockholders capital investment (contributed capital) versus return of corporate profits (earned capital), example is based on a partially liquidating dividend where the dividend paid out of earned capital (Retained Earnings) is the non-liquidating portion, and the dividend paid out of contributed capital (common stock APIC) is the liquidating portion of dividend paid, both the liquidating and non-liquidating portion reduce shareholders equity, Liquidating dividend is not based on Corp's earnings, it reduces SHE equity (return of shareholder capital), requires proper disclosure in the financial statements and to dividend checks to shareholders, Reasons for Liquidating Dividends: 1-Corp issues dividends based on regular dividend paid, 2-Some corporations use Paid-in Capital as the basis for dividends like Mining Corp's (depletion of resources), 3-Corp goes out of business, declares liquidating dividend, 4-Without proper disclosure of liquidating dividends, stockholders may wrongly believe the company is operating at a profit, a clear statement be made in (F/S) & any dividend check to stockholders, detailed accounting by Allen Mursau