07-03-2006, 02:53 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by insaan</i>
<br />AOA
abdur rehman
let me try
an event B/W balance sheet date and date of authorization of issue is a subsequent event(IAS 10.3)
and date of authorization may be(IAS 10.4,10.5,10.6)
Date of
⢠BOD authorisation for issue (to outsiders), or
⢠Management authorisation for issue to supervisory board(solely of non executives)
and as per pakistan,date of authorization of issue is date of BOD authorization for issue,approval by shareholders is immaterial in this regards
the circular only deals with propposed dividend B/W B/S date & date of
BOD authorisation of isue
that is,
if dividend is proposed & approved/unapproved by shareholders , it would be a nonadjusting event
and as far as approval of proposed dividend in AGM is concerned..companies ordinance applies in this case & look if there has been any ammendment in this regards
AH
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Let me draw attention to para 20 of IAS 37. Dividend not yet approved by shareholders is not obligation of the entity. So, AbdurRehman the answer of your question is that BOD's recommendation of dividend does not give rise to obligation because BOD only recommends and shareholders are the ultimate approval
And in this regard I can show the reference of examiner comments.
Waiting for reply
<br />AOA
abdur rehman
let me try
an event B/W balance sheet date and date of authorization of issue is a subsequent event(IAS 10.3)
and date of authorization may be(IAS 10.4,10.5,10.6)
Date of
⢠BOD authorisation for issue (to outsiders), or
⢠Management authorisation for issue to supervisory board(solely of non executives)
and as per pakistan,date of authorization of issue is date of BOD authorization for issue,approval by shareholders is immaterial in this regards
the circular only deals with propposed dividend B/W B/S date & date of
BOD authorisation of isue
that is,
if dividend is proposed & approved/unapproved by shareholders , it would be a nonadjusting event
and as far as approval of proposed dividend in AGM is concerned..companies ordinance applies in this case & look if there has been any ammendment in this regards
AH
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Let me draw attention to para 20 of IAS 37. Dividend not yet approved by shareholders is not obligation of the entity. So, AbdurRehman the answer of your question is that BOD's recommendation of dividend does not give rise to obligation because BOD only recommends and shareholders are the ultimate approval
And in this regard I can show the reference of examiner comments.
Waiting for reply
