dividend

[ahsan_aziz_arain]

salam . dears , plz tell me when dividend is shown as a current liability , and when it is shown in notes ?
thanks .

[Odyssee]

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]

Thanks odyssee . but what is the difference between approved , proposed and declared dividend , and what is the accounting treatment thereof ?

[Odyssee]

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]

thank you very very much odyssee . i m satisfied