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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Dividend*
ordinary share capital(75c)=$150000
5% ireedeemable pref. shares=$75000
the company pays an interim dividend of 10c per share to ordinary shareholders and the fixed dividend to pref. shareholders.
the company declares a final dividend prior to the end of 25c per share to its ordinary shareholders.
what amount should be shown in the SOCIE and SOFP in relation to dividends?
ans says:SOCIE=$73750;SOFP=$50000
#but my calculation says:
for SOCIE:
dividend for ordinary holders(200000X10c)=$20,000
for pref. holders(75000X5%)=$3750
total of $23,750
for SOFP:
as it only declared but not approved so it will not appear in SOFP.
SOCIE=$23750
SOFP=nil
am I right sir?
#and in which condition the dividends will appear un SOFP.
please explain sir..
Dividends do not appear in either the SOFP or the SOPL unless they have been approved.
So if the final dividend as not been approved then what you have written is correct.