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maam if equity dividend is declared after yr end date(but before authorisation of FSs) then in that case is it an adjusting or non-adjusting event?
assume that the dividend was proposed prior to yr end date.
Same principle as here … https://opentuition.com/topic/restructuring-provision-yes-no
DE FACTO there was no obligation at the reporting date. The company is under no obligation to pay a dividend until it is declared.
noted ma’am. sorry for making you reiterate the same thing twice.
Just one thing, to directly retailed to above post, but related to IAS 37 and IAS 10.
restructuring provision requires that actual costs should be used even if they become known after reporting date, so does this rule by any chance hold true for other provisions also?
Measurement for ANY provision under IAS 37 is “the best estimate of the expenditure required to settle the present obligation at the end of the reporting period”.
So IF the obligation is DE FACTO settled before the financial statements are finalised – that settlement is an adjusting event and the provision can be adjusted (if materially different to the draft accounts).
But if it’s not settled – it can only remain an estimate.
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