Excess dividend payments would be avoided if: companies were required to disclose the audited figure for

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Excess dividend payments would be avoided if:

● companies were required to disclose the audited figure for available reserves and distributable profits in their annual report and accounts;

● dividends are only paid when the board is satisfied with solvency statements by directors;

● regulatory oversight of dividend payments were required where there is a substantial pension fund deficit.

Discuss if these suggestions would avoid all excess dividend payments.

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Related Book For  book-img-for-question

Financial Accounting And Reporting

ISBN: 9781292399805

20th Edition

Authors: Barry Elliott, Jamie Elliott

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