Difference between revisions of "Residual Assets"
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[shareholder funds] + [accumulated profit and loss account] + [assets – liabilities] | [shareholder funds] + [accumulated profit and loss account] + [assets – liabilities] | ||
− | ''Worked Example – Calculating Residual Assets'' | + | '''Worked Example – Calculating Residual Assets''' |
* Shareholder Funds - £345k | * Shareholder Funds - £345k | ||
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− | ''Residual Assets'' | + | '''Residual Assets''' |
£345k + £200k + £100k = £645k | £345k + £200k + £100k = £645k | ||
Revision as of 13:52, 8 February 2014
Residual Assets are the assets that remain in an organisation after all creditors have been paid. In a FairShares Company / Co-operative, residual assets are distributed in a way that is defined in Clause 54.
Residual assets are calculated as follows:
[shareholder funds] + [accumulated profit and loss account] + [assets – liabilities]
Worked Example – Calculating Residual Assets
- Shareholder Funds - £345k
- Profit and Loss Account - £200k
- Assets - Liabilities - £100k
Residual Assets
£345k + £200k + £100k = £645k
Residual Assets may be distributed partly as a Community Dividend upon dissolution if the organisation has received grants from Community and Public Funding bodies.
Return to the FairShares Glossary.