Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Statement of changes in equity – where to present declared but unpaid dividend?
- This topic has 3 replies, 2 voices, and was last updated 1 month ago by
Stephen Widberg.
- AuthorPosts
- July 7, 2024 at 5:19 pm #707939
Dear All,
where to present declared but unpaid dividend in the Statement of changes in equity (posted in SFP as a liability)?
July 8, 2024 at 1:11 pm #708038Directors propose before year end
No double entry
Shareholders approve after year end at AGM
Dr SOCIE CR Cash
(Assuming this is an equity dividend).
Note – this is FA not SBR
July 13, 2024 at 7:26 pm #708325Thank you very much for the replay, but I think I did not write clearly what I had in mind.
I was considering the situation after AGM where dividend is officially declared and approved but for some reason it is not paid till the end of the reporting period (e.g. company prepares quarterly FS).
This means that there is a timing difference between record date when shareholders become eligible to receive dividends and payment date.
So I think we should record profit distribution and this unpaid dividend account for as a liability (Dt equity/ CR liability)in the SFP but I am not sure about the Statement of Changes in Equity because this dividend is not paid but there is a movement in the equity.
July 15, 2024 at 3:33 pm #708503Assuming IFRS(IAS 34) and assuming this answer is for exam purposes only :
Dr Dividend line in SOCIE
Cr Current liabilityI’d be very surprised to see it tested 🙂
- AuthorPosts
- The topic ‘Statement of changes in equity – where to present declared but unpaid dividend?’ is closed to new replies.