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Hello Sir,
I have difficulties in understanding where dividends paid have to appear.
I know that dividends paid to ordinary appear in the SOCE only.
But I am confused about dividends paid to preference shareholders be it redeemable or irredeemable.
Q1) In what case does the dividend appear in the SOPL and SOFP (when it is redeemable or iredeemable) ?
I hope my question is understandable
Thank you SirIf irredeemable preference shares, then dividends appear in the Statement of change in equity. If not paid at the end of the year, then the amount owing appears on the Statement of financial position.
If redeemable preference shares, then they appear in the Statement of profit or loss in the same way as interest on loans. If not paid at the end of the year then the amount owing appears on the Statement of financial position.
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