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Can I knw why I should not record by now for the dividend proposed at the sofp date? because as I knw for those dividend declared after sofp date only will be recorded when the dividend is actually paid. But my case is the director propose dividend agreed at sofp date.
propose dividend is that the same with declare dividend?
I thought it should
when the dividend proposed
dr retained earning
cr dividend payable
when the dividend paid
dr dividend payable
cr cash/ bank
Am I mistake on something?Simply proposing a dividend doesn’t (in law) mean that it will be definite – the shareholders have to vote on it.
We only record it if either it is definite (and has been voted on) or if it has actually been paid.
Is that means if it is declared dividend AT SOFP DATE mean the shareholder ady vote on it and the dividend will be paid AFTER SOFP DATE so it will be record
AT SOFP DATE
dr retained earning
cr dividend payable
when it is actually paid
AFTER SOFP DATE (WHICH MEANS NXT ACC PERIOD)
dr dividend payable
cr cash/ bank
If it is proposed dividend AT SOFP DATE , it means that the shareholder haven’t vote on it. So we do not have to record anything currently unless the shareholder have vote on it.
Am I correct?
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