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Hello John,
Can u please tell me whether proposed dividends would appear under the heading of current liability..
And secondly whether things like fixed asset replacement reserve would appear in statement of changes in equity? Plus would tht become a part of appropriation in income statement aswell?Waiting for ur response
Propose dividends appear nowhere in the financial statements (because if they have only been proposed, they are not certain – they only become definite when shareholders have voted on them).
All reserves appear in the Statement of changes in equity. There will no mention of it in the Statement of Profit or Loss. If there has been an appropriation during the year, then this will appear only in the Statement of changes in equity as a reduction in Retained Earnings and an increased in Non-current assets replacement reserve (we stopped calling them fixed assets many years ago 🙂 )
Yeah lol.same thing, examiner doesnot deduct marks on using different terminologies though ????..
Thankyou so much for the help anyhow.
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