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Module I· HGB vs. IFRS — Structural DifferencesAdvanced
Question

What does the dividend distribution restriction under Section 268(8) HGB mean for dividend policy?

Answer

Section 268(8) HGB can block certain accounting profits from dividend distribution to protect creditors.

Deep diveShow more details

For LBOs, dividend capacity can affect cash upstreaming to the acquisition vehicle and debt service planning.

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