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Accounting for Bonus Share from Subsidiary
02-15-2011, 09:43 PM
Post: #1
Accounting for Bonus Share from Subsidiary
Kamran Bhai,

Assalamualikum.

I am from Bangladesh, working with a Financial Institution (FI). The FI is a listed company with Bangladesh capital market. We have one 100% owned subsidiary company for brokerage operations. The subsidiary is not listed with the capital market. Income of the subsidiary is fully cash based. In 2010, the parent (FI) has received bonus share valuing BDT 150 million from its subsidiary. The management policy is to reinvest the profit of subsidiary by receiving stock dividend from the subsidiary until it goes for listing with capital market.

Please suggest me with specific reference, whether we can recognize the stock dividend as income of the year??

Regards,
Mustaq Ahammed
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