In order to finance its high upfront expenditure, Audi will systematically utilize available earnings
potential, for example by expanding its market position in the upper premium segments.
Also, the AGM resolved to appropriate DDM's available earnings
in accordance with the board's proposal in the 2015 Annual Report, not to pay a dividend for the 2015 financial year and resolved to discharge the board of directors and the management team from liability for the 2015 financial year.
over the past year to support its expansion plans.
Estimates for advance quarters--quarters for which there is no corresponding annual estimate--are extrapolated using available earnings
data in three steps:
301 and is treated as a dividend to the extent of available earnings
The pool of available earnings
in the broader risk management world is increasingly vast.
One of the more pernicious threats faced by closely held corporation shareholders is the prospect of "constructive" distributions, taxed as ordinary dividend income to the extent of available earnings
and profits, for transactions in which the shareholder benefits from a corporate action.
302(b) tests; otherwise, these transactions are treated as other nonliquidating distributions (i.e., dividend income to the recipient to the extent of available earnings
and profits); see Secs.