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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › interim dividend and payment of dividend
hello, I have a question regarding a full statement of financial position and statement of profit/loss pro-forma question for the year ending December 31 2019. In the given balance sheet (that is balanced out) there is a debit account for ‘interim dividend paid’ for £9500, in addition there is a note stating: ‘At the end of year 2019, the board has made a decision to pay dividend at 2p per share to shareholders. The dividend payment is to be paid from the Retained Earnings.’ the dividend amount for that note is calculated to be £8000 using other information. after asking my lecturer directly they told assume the £8000 dividend to be already paid and not ignore as if it was proposed. but I’m unsure what to do from there.
my main concern is the treatment of the dividends in the sofp.
Dividends only appear in the SOFP if they have been declared before the year end but have not yet actually been paid. Proposed dividends do not appear in the SOFP (but will be in the notes to the accounts).
