New Treatment of Proposed Dividend & Bonus Issues

[insaan]

ok
i got ur point but here is as i go on this issue;

look now
my point of view is that
date of authorization of issue is the date when BOD authorizez F.S 4 issue , as for IAS 10 , so a subsequent event is the one occuring b/w B/S date & date of BOD's authorization 4 issue,now the event in this period may be adjusting or non adjusting,thatz the scope of IAS 10..so keeping in view of this proposed dividend after B/S date is non adjusting event...theek hai

now 4 IAS 37
u r very rite that constructive obligation wud arise when shareholders
approve in AGM..that's wat i also concluded from IAS 37 para20...now does this mean that a dividend proposed but not yet approved by shareholders in AGM before B/S date shall not be recorded as a liability.....it seems to be so as from examiner's comments

BUt here i wud quote another example from CAinter mod C s 2006 exam,
examiner asked
The directors approved and declared a 5% interim stock dividend on June 18, 2005. The shares were allotted on June 28, 2005 but no certificate has yet been issued to any shareholder.
here yr end is june 30 2005.
question required to prepare financial statements

in this case also since shareholders havent approved yet in AGM so no obligation should be recorded...
but examiner in his comments said
Q1(c)Stock dividend was not accounted for.

so here ,declaration of dividend before B/S date is treated as an obligating event..

now wat exactly the case is?
plz make it clear..
thx[)]