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Difference between preference share dividend outstanding and instalment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Difference between preference share dividend outstanding and instalment

  • This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 17, 2020 at 9:07 am #585886
    kausaly
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Is preference share dividend outstanding for the year included in the income Statement?

    What if the preference share dividend is divided into two instalments and only one instalment is paid ? Do I included the total dividend in the income statement even if one is not paid?

    September 17, 2020 at 11:25 am #585912
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Yes, because it is a fixed amount.

    September 18, 2020 at 9:29 am #586009
    kausaly
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    What if the preference share dividend is divided into two instalments and only one instalment is paid ? Do I included the total dividend in the income statement even if one is not paid?

    September 18, 2020 at 2:09 pm #586037
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    The instalment not yet paid is a liability on the SOFP.

    The full dividend for the year is shown on the SOPL.

    September 18, 2020 at 4:54 pm #586056
    kausaly
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Thank you sir..

    September 19, 2020 at 9:26 am #586117
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Difference between preference share dividend outstanding and instalment’ is closed to new replies.

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