When property is distributed as a dividend, when should the assets be re-valued to their market value?

Question

Quizplus · Accepted Answer

The assets should be re-valued to their market value on the declaration date, which is when the board of directors announces the dividend payout to shareholders. This ensures that the dividend is being paid out based on the most up-to-date information about the value of the assets being distributed. It is important to note that the record date (when shareholders must own the stock to be eligible for the dividend) and the payment date (when the dividend is actually paid out) are not relevant to the re-valuation of assets.

When Property Is Distributed as a Dividend, When Should the Assets