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Dividend Policy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Dividend Policy

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarJohn Moffat.
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  • May 12, 2019 at 5:01 pm #515712
    Avatardookhan12
    Member
    • Topics: 76
    • Replies: 61
    • ☆☆

    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.

    May 13, 2019 at 8:30 am #515744
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    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.

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