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Accounting publication

  • 31 January 2019
  • 2 replies

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Can the company distribute dividends at the end of the financial period even though it recorded losses in the same year?

2 replies

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Yes, the company can distribute profits at the end of the financial period, even though it achieved losses in the same year
Where the profits are distributed from the retained earnings account
Yes, you are right dividend may be distributed from current year profit or unappropriated profits of the previous years. Therefore, if a company makes a loss during a year, its directors still can distribute divided from retained earnings.