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+--- Thread: dividend (/thread-dividend)
dividend - ahsan_aziz_arain - 07-10-2009
salam . dears , plz tell me when dividend is shown as a current liability , and when it is shown in notes ?
thanks .
- Odyssee - 07-10-2009
Dividend declared but not paid <b>before</b> the reporting year-end will be included in the Current Liability.
If an entity declares dividends <b>after</b> the reporting period, the entity shall not recognise those dividends as a liability at the end of the reporting period. That is a non-adjusting event. [IAS 10.12]
However this fact should be disclosed in the notes, unless it is immaterial.
- ahsan_aziz_arain - 07-12-2009
Thanks odyssee . but what is the difference between approved , proposed and declared dividend , and what is the accounting treatment thereof ?
- Odyssee - 07-12-2009
Dividend is first of all proposed by the Board of Directors. That is called proposed dividend. A proposed dividend does not create a liability for the company.
The proposed dividend is then approved by the shareholders at the AGM. As soon as the dividend is approved, it should be treated as a current liability. Approved dividend and declared dividend are the same thing.
- ahsan_aziz_arain - 07-16-2009
thank you very very much odyssee . i m satisfied