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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Dividend Policy
Good Morning,
I have seen past exam questions requiring a discussion on the benefits and drawbacks of the dividend policies adopted by the company. However, I’m unsure as to how to determine or ascertain the dividend policy from the financial information provided in the scenario.
Can you provide some guidance on how to identify which policy was adopted by the company?
Thank you.
I cannot give you any real rules, because it all depends on the question.
It is a combination of looking at the history of past dividends (if this is given) and reading whatever you are told in the wording of the question about what the company has done in the past and/or what their intentions are for the future.