Demo Limited is a private company with a 31 December year-end. The following is the summarized statement

Question:

Demo Limited is a private company with a 31 December year-end. The following is the summarized statement of financial position for Demo Limited as at 31 December 1994:

Summarized Draft Statement of financial position as at 31 December 1994

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Requirement

(a) As a private company, what is the maximum distribution of profits that Demo Limited can make?

(b) If Demo Limited were a public limited company, what would be the maximum distribution of profits the company could make?

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International Financial Accounting And Reporting

ISBN: 9780903854726

2nd Edition

Authors: Ciaran Connolly

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Question Posted: May 30, 2024 10:02 AM

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Demo Limited is a private company with a 31 December year-end. The following is the summarized statement

Question:

Net assets Share capital Share premium Unrealised losses on asset revaluations Realised profits Realised losses '000 '000 400 350 40 (20) 60 (30) 30 400

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International Financial Accounting And Reporting

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