Realised profits

Company law and financial reporting.

Any profit whose realisation in the form of cash, or other assets readily convertible into cash, is sufficiently certain to allow its recognition as an item of profit in financial statements.

Only realised profits may be distributed, for example in the form of dividends.

See also

• Distributable reserves
• Financial reporting
• Group
• Internal trading
• Other comprehensive income
• Profit
• Realisation
• Recognition
• Reduction of Capital
• Undistributable reserves
• Unrealised loss
• Unrealised profit