10-13-2004, 08:00 PM
HI ALI
Firstly i inform you that some improving STANDARDS was introduced by IASB at U.k. teacher's confereence in which IAS 10 was also involved ...and it was said that"dividends declared after the balance sheet date should not be recognized as a libility but sohuld be shown as a NOTE in the financial statement coz its a non-adjusting events" ... treatment of proposed dividend as a notes to the accounts is not a problem .. but IAS 10 also allows that proposed dividend should be shown as a separate component of equity on the face of balance sheet...so this situation create some problems therefore the treatment is that... " The final balance of accumulated profit must be shown before the deduction of the proposed dividend, hence the proposed dividend may not be shown as a deduction from accumulated profit"
TREATMENT ARE AS FOLLOWS IN BAL.SHEET $000
Accumulated profit(from which a proposed 100
dividend of 20,000)
MR WHAPPAAAA
Firstly i inform you that some improving STANDARDS was introduced by IASB at U.k. teacher's confereence in which IAS 10 was also involved ...and it was said that"dividends declared after the balance sheet date should not be recognized as a libility but sohuld be shown as a NOTE in the financial statement coz its a non-adjusting events" ... treatment of proposed dividend as a notes to the accounts is not a problem .. but IAS 10 also allows that proposed dividend should be shown as a separate component of equity on the face of balance sheet...so this situation create some problems therefore the treatment is that... " The final balance of accumulated profit must be shown before the deduction of the proposed dividend, hence the proposed dividend may not be shown as a deduction from accumulated profit"
TREATMENT ARE AS FOLLOWS IN BAL.SHEET $000
Accumulated profit(from which a proposed 100
dividend of 20,000)
MR WHAPPAAAA
