09-18-2003, 06:27 AM
I was going through some financial statements issued by some companies, in which they declared the divided and recognized that as liability, which is i think against IAS-10 (revised 1999)
as per IAS 10
"If dividends to holders of equity instruments are proposed or declared after the balance sheet date, do not recognise those dividends as a liability (as had been permitted under the old IAS 10). [IAS 10.11] However, disclosure of post-balance-sheet-date dividends is required by paragraph 85 of IAS 1, Presentation of Financial Statements, and if they are stock dividends, IAS 33, Earnings Per Share, requires adjustment of earnings per share. That disclosure could be in the notes or in the equity section of the balance sheet. The option in the earlier IAS 10 to recognise a liability for dividends that are proposed or declared after the balance sheet date has been removed."
so what do u think people, isn't it the violation of IAS 10??
can u clear my confusion ????
S M R
as per IAS 10
"If dividends to holders of equity instruments are proposed or declared after the balance sheet date, do not recognise those dividends as a liability (as had been permitted under the old IAS 10). [IAS 10.11] However, disclosure of post-balance-sheet-date dividends is required by paragraph 85 of IAS 1, Presentation of Financial Statements, and if they are stock dividends, IAS 33, Earnings Per Share, requires adjustment of earnings per share. That disclosure could be in the notes or in the equity section of the balance sheet. The option in the earlier IAS 10 to recognise a liability for dividends that are proposed or declared after the balance sheet date has been removed."
so what do u think people, isn't it the violation of IAS 10??
can u clear my confusion ????
S M R
