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 which are treated as such for the purposes of the company's accounts, which usually means that the profit has to be real rather than notional, such as a paper profit resulting from revaluation. If a non-cash asset is distributed, any unrealised profit on such asset which is included in the company's accounts is treated as realised (section 276, Companies Act 1985).
Related links
dividends

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • distributable profits — ➔ profit1 …   Financial and business terms

  • distributable profits — distributable reserves The profits of a company that are legally available for distribution as dividends. They consist of a company s accumulated realized profits after deducting all realized losses, except for any part of these net realized… …   Accounting dictionary

  • distributable profits — distributable reserves The profits of a company that are legally available for distribution as dividends They consist of a company s accumulated realized profits after deducting all realized losses, except for any part of these net realized… …   Big dictionary of business and management

  • distributable profits — /dɪsˌtrɪbjυtəb(ə)l prɒfɪts/ plural noun profits which can be distributed to shareholders as dividends if the directors decide to do so …   Dictionary of banking and finance

  • distributable reserves — distributable profits …   Accounting 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 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 p …   Financial and business terms

  • profits available for distribution — See: distributable profits …   Accounting dictionary

  • profits available for distribution — See distributable profits …   Big dictionary of business and management

  • 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

Share the article and excerpts

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