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How are dividends shown in balance sheet and statement of changes in equity?
1) how is dividend paid during th year treated ?
2) how is dividends proposed during the year shown?
3) how is dividends proposed after the year shown ?
Dividends paid during the year appear in the SOCE as reducing the retained earnings. There is nothing to appear in the Statement of Financial Position (we do not call in the balance sheet).
Proposed dividends(regardless of when proposed) do not appear anywhere in the statements.
I do explain this in my free lectures on limited companies. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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