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Dividends are recorded as a liability after deceleration and before they are paid to the company's shareholders, when they are paid, the dividend payable is reversed.
Cash dividends are immediately recorded as a liability upon declaration of the board of directors, however there would be another accounting treatment for share dividends, wherein they are not recorded as liability upon declaration of the BOD.
Dividend would be recorded as a liability after declaration.
when dividends is declared, this creates a liability as an obligation has arised
Dividends should be recorded as a liability when it is declared by the Board of Directors.
Yeah , after declaration is the right answer.
thanks for invitation
after declaration is the right answer
According to the requirements of International Financial Reporting Standards (IFRS), Dividend should be recorded as payable;
Dividend once declared becomes a liability.
A dividend to stockholders record on the date that the board of directors declares the dividend. Retained Earnings or Temporary Account is Debited and Dividends Payable is Credited in books of Accounts and thus Dividends Payable is a current liability account.
Dividends are recorded as a current liability on the company's books. the journal entry confirms that the dividend payment is now owed to the stockholders. On the declaration date, the Board announces the date of record and a payment date; the payment date is the date when the funds are sent to the shareholders and the dividends payable account is reduced for the payment.