Groups & consortia: groups - entitlement to profits or assets available for distribution: varying rights for different accounting periods - effect
This page applies in any case where an equity holder holds shares or securities whose rights to dividend or interest vary for different accounting periods (CTM81070).
In such a case, the percentage of the profits available for distribution to equity holders to which the parent company is beneficially entitled is the lower of the following two percentages:
- the percentage of those profits to which the parent company is beneficially entitled in the relevant accounting period (CTM81005), and
- the percentage of the profits to which the parent company would be beneficially entitled in any later accounting period in which the rights attaching to any shares or securities had changed.
There is an example at CTM81123.
If an equity holder holds shares or securities:
- with varying rights, and
- subject to option arrangements (CTM81090 to CTM81100),
then the guidance in CTM81105 applies.