If there are insufficient funds can a declared dividend be paid after the end of the accounting period.?
Other - Business & Finance - 1 Answers
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Answer 1 :
The dividend is only declared after the end of the accounting period when it is known that a profit has been made. If you mean that profit was made, dividends declared but now there is insufficient cashflow to pay the dividends then that is different. The dividends are a liability of the company once they have been declared so it would be up to the company to negotiate delayed payment if they don't have the funds.
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