10-14-2004, 11:06 PM
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IAS 10 provides that dividend declared after the date of balance sheet shall not be adjusted.
Usually dividends are declared in board meetings, after the date of balance sheet, keeping in view the net profit of immediately preceding financial year, then why the dividend is not adjustable in accounts of the preceding year to which it relates?
Answers are required from only professionals or seniors.
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what we have talked before relates to the requirements of standard and local laws,
now coming to your question, that it should be accounted for in the financial statements for the period to which it relates,
Logically speaking you are right, but if we look at the nature of the dividend, it is an appropriation dependent upon a certain event, i.e. profit, and in my opinion appropriations cannot be related to a financial period. Its my personal opinion.
SMR
IAS 10 provides that dividend declared after the date of balance sheet shall not be adjusted.
Usually dividends are declared in board meetings, after the date of balance sheet, keeping in view the net profit of immediately preceding financial year, then why the dividend is not adjustable in accounts of the preceding year to which it relates?
Answers are required from only professionals or seniors.
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
what we have talked before relates to the requirements of standard and local laws,
now coming to your question, that it should be accounted for in the financial statements for the period to which it relates,
Logically speaking you are right, but if we look at the nature of the dividend, it is an appropriation dependent upon a certain event, i.e. profit, and in my opinion appropriations cannot be related to a financial period. Its my personal opinion.
SMR
