Modern dividend statutes, as exemplified by the Model Business Corporation Act, have incorporated many accounting terms. For aid in the complex process of construing such statutes, the courts and commentators have turned to generally accepted accounting principles. Although accounting principles may be helpful in statutory interpretation, they are not determinative. The accounting attitude toward a transaction must still be correlated with the dividend policies inherent in the statute.
Michael D. O'Keefe,
Income Tax Allocations and Dividends under the Model Business Corporation Act,
42 Wash. L. Rev.
Available at: https://digitalcommons.law.uw.edu/wlr/vol42/iss4/7