Consolidated P&L reserves and dividends

Consolidated P&L reserves and dividends

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A very short bit of background first... We're preparing consolidated accounts for the first time this year and have goodwill arising on consolidation to amortise which will clearly have an impact on consolidated P&L reserve. It doesn't feel right that the amortisation charge would impact on either the parent or subs ability to pay dividends to shareholders and that only the standalone distributable reserves of both entities should be taken into account, but would someone please put my mind at ease...

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By Towards excellence
12th Apr 2012 16:26

A company pays dividends, not a group, therefore no effect on paying company's reserves - at least that's what I remember!

SA

 

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