The Availability of Surplus for Distributions

Distributable Profits on a Consolidated Basis

Abstract

　This paper discusses the availability of surplus for distributions in U.S. from the light of three divided time periods. In addition, it discusses the consolidated dividend system in these three time periods. The principle of distinction between capital and profit is connected with a mind in which the distributable equity is limited to earned―surplus, however, the consolidated dividend system works effectively when it is not limited to earned―surplus.