Dividends declared after the Balance Sheet date - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Students (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=13) +--- Thread: Dividends declared after the Balance Sheet date (/showthread.php?tid=1174)

Dividends declared after the Balance Sheet date - Ali Akbar - 10-03-2004 IAS 10 provides that dividend declared after the date of balance sheet shall not be adjusted. Usually dividends are declared in board meetings, after the date of balance sheet, keeping in view the net profit of immediately preceding financial year, then why the dividend is not adjustable in accounts of the preceding year to which it relates and why it is adjustable in the year in which it is declared? Answers are required from only professionals or seniors. - Moon - 10-04-2004 Salam Well this is a critical issue wherein the IAS states that is a non-adjusting event and the dividend disclosed after the balance sheet date needs disclosure under IAS 01, however, schedule (4th and 5th) to the Ordinance requires under current liability "the disclosure of the proposed dividend" and under expenses, its related expense for the year which means the adjustment of the amount of proposed dividend.... SECP knows better..... Though my forthcoming words do not fullfil the requirements of this room, it is worth mentioning here that SECP should better become a professional body or it should quit. My GOD, it has not been able to resolve whether the private and public companies should follow the IAS in the preparation of its financial statements. this is one of the ages old cases to be resolved..... Many people may be aware that recently jobs have been announced under SECP Junior executive..... ACA has been seeked limiting his/her age to 25 years.... SECP must say clearly that ACAs are ineligible to apply, how it is possible that a person completes his articles well before the age of 25 years.... SECP know better..... ------------------------ Be careful! Words speak.... - idreesdurrani - 10-05-2004 Salam Yeah I agree with u Mr. Moon. This is yet another example of divergence between the reporting requirements of Companies Ordinance, 1984 and IAS. There were many other such instances like the differences between segment reporting of sales of segments under IAS 14 and 4th schedule, the difference in treatments of revaluation surplus under section 235 (Old) and IAS 16 etc. I think SECP has now realized these discrepancies and the recent revisions in the Companies Ordinance reflect their intention to harmonize such reporting requirements. And yeah as the framework to IAS says local laws will override the requirements of IAS (Where they contradict each other), we have no option….. <font face='Century Gothic'></font id='Century Gothic'><font size=4></font id=size4><font color=blue></font id=blue><font color=beige></font id=beige><font color=brown></font id=brown><font color=teal></font id=teal><font color=blue></font id=blue> Idrees - itz_faraz - 10-23-2004 Well IAS 10 does seem to be contradicting with what should be happening. However known this from many reliable sources that in Pakistan, the 'best practices' include that this statement of IAS10 is ignored; ie. dividend declared after balance sheet date is included in the balance sheet and not accounted for the next year. - Faraz Azhar - Faraz Azhar