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متابعة

When to record dividends as a liability? after Adoption of shareholders of the decision of distribution or after deceleration ?

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تم إضافة السؤال من قبل Mohamed Azmy , Finance Manager , Napata
تاريخ النشر: 2016/09/11
Almutaz Bakry Sidahmed
من قبل Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

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.

Alfred Jr. Santamaria
من قبل Alfred Jr. Santamaria , State Auditor , Commission on Audit

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.

Nazmul Islam CMA
من قبل Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

Dividend would be recorded as a liability after declaration.

Yusuf Amod
من قبل Yusuf Amod , Senior External Auditor , Ernst & Young

when dividends is declared, this creates a liability as an obligation has arised 

Saeed Ur Rehman
من قبل Saeed Ur Rehman , Senior Manager Audit & Advisory , Afrasiab Tanveer & Co Chartered Accountants

Dividends should be recorded as a liability when it is declared by the Board of Directors.

Tomasz L
من قبل Tomasz L , Reporting Specialist , Outworking

Yeah , after declaration is the right answer.

mohamed Hakim CMA CPA Candidate
من قبل mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

thanks for invitation 

 

after declaration  is the right answer 

Shahzad Iqbal Qaiser
من قبل Shahzad Iqbal Qaiser , Senionr Deputy Manager Payable Accounts , Gharibwal Cement Limited

According to the requirements of International Financial Reporting Standards (IFRS), Dividend should be recorded as payable;

  • when it is declared by board of directors if it is interim dividend, still it needs approval of share holders in up coming general meeting of shareholders
  • when it is adopted and approved by the shareholders in the general meeting of shareholders if it is a final dividend.

JATIN TALREJA
من قبل JATIN TALREJA , Accounting Specialsit , Terralogic Software Solutions Private Limited

Dividend once declared becomes a liability.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

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.

Wilfredo Quito
من قبل Wilfredo Quito , Accounting Manager , DDC LAND INC.

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.