Liquidating Dividends
Code: 3630
👁 Views: 21
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Exceptional distributions made when liquidating part of the capital, returning part of shareholders' investments. Under ASC 505, reduces paid-up capital.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 505
Equity
❓ Frequently Asked Questions
Q: What are liquidating dividends?
A: Exceptional distributions made when liquidating part of the capital, returning part of shareholders' investments (reduces paid-up capital).