Hello sir. I want to ask:
How many stages are there in which dividend has to go through before they are finally issued by the company?
And what are the double entries made on each stage?
Ask the Tutor ACCA FA
Dividend chapter
3y ago#1Dividends are proposed by the directors and are then voted on by the shareholders. Only then are they 'certain'. They are only recorded when they are actually paid (Cr Cash Dr Dividends) as explained in my free lectures.
Thanks :)
Could you please also shed light on what is interim dividend and final dividend?
And what is the point of benefit between them?
And they also recorded when they become certain such as when they are actually paid?
3y ago#3Interim dividends are paid during the year whereas final dividends are paid after the end of the year when they know what the profits are.
It is simply so that shareholders do not have to wait as long to get some dividend.
They are recorded when they are paid.
Have you actually watched my free lectures on this?
Sign in to reply to this topic.