Accountancy Forum

As per IAS-10 dividend declared after the balance sheet date is a non adjusting event and should not be recorded as liabilty.only its disclosure is required. it will be should as paid in next year. now my question is

that a company has declared a dividend after the balance sheet date.it has deducted withholding tax @ 10% but has not deducted zakat @ 2.5%. para (d) of audit report says "no zakat was deductible at source under zakat and ushr ordinance,1980. do i need to change this para this year or next year.

Bilal,

If Zakat was required to be deducted and has not been deducted, auditor has to qualify/modify his opinion.

Regards,


KAMRAN.

yes i think zakat must be deducted on dividend paid even by a private company.

but why should a non adjusting event have an effect on audit report. if its proper disclosure is given then why should we qualify?

Dear,

You will qualify in the year when dividend is paid without deduction of zakat and not in the year of disclosure.

Regards,


Kamran.