distributable profit

distributable profit
distributable profit distributable profit profit1

* * *

distributable profit UK US noun [C, usually plural] (also distributable reserve, also distributable surplus)
ACCOUNTING, FINANCE the amount of a company’s profit that is available to pay dividends to shareholders in a particular period: »

The Companies Act only allows dividends to be paid out of a company’s distributable profits.

»

Distributable surplus for the current year totaled $363 million as compared to $417 million for the previous year.

»

Recent losses mean the company has no distributable reserves, making a payout to shareholders illegal under rules designed to protect creditors.

Compare DISTRIBUTED PROFIT(Cf. ↑distributed profit), NON-DISTRIBUTABLE RESERVE(Cf. ↑non-distributable reserve)

Financial and business terms. 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • distributable profit — Under section 236 of the Companies Act 1985 distributable profit is the profit shown in the latest statutory accounts after deducting or adding any reserves or deficit carried forward from earlier years (and having taken out of account any… …   Law dictionary

  • distributable reserves — Under section 236 of the Companies Act 1985 distributable profit is the profit shown in the latest statutory accounts after deductions or adding any reserves or deficit carried forward from earlier years (and having taken out of account any… …   Law dictionary

  • distributable reserve — UK US noun [C, usually plural] ► ACCOUNTING, FINANCE DISTRIBUTABLE PROFIT(Cf. ↑distributable profit) …   Financial and business terms

  • distributable surplus — UK US noun [C or U] ► ACCOUNTING, FINANCE DISTRIBUTABLE PROFIT(Cf. ↑distributable profit) …   Financial and business terms

  • profit — total revenue less total expenses for a period of time calculated in accordance with generally accepted accounting principles. Glossary of Business Terms Revenue minus cost. The amount one makes on a transaction. Bloomberg Financial Dictionary *… …   Financial and business terms

  • distributable profits — distributions made by companies from profits available for the purpose (section 263, Companies Act 1985). Profits available for the purpose are accumulated realised profits less accumulated realised losses. Realised profits are, broadly, those… …   Law dictionary

  • profit — prof·it n 1: gain in excess of expenditures: as a: the excess of the selling price of goods over their cost b: net income from a business, investment, or capital appreciation compare earnings, loss …   Law dictionary

  • profit and loss account reserve — A reserve that contains the balance of retained earnings to carry forward. It is fully distributable and shown as part of shareholders reserves on the balance sheet …   Accounting dictionary

  • non-distributable reserve — UK US noun [C, usually plural] (also non distributable profit) ► FINANCE profit made by a company that is not available to pay as dividends to shareholders: »Included in the Profit and Loss Account of the company are non distributable reserves …   Financial and business terms

  • non-profit corporation — A corporation no part of the income of which is distributable to its members, directors or officers. Corporation organized for other than profit making purposes. Corporations may be organized under the Revised Model Non Profit Corporation Act… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”