Please clarify can we pay the the interim dividend of 2011-12 in May 2012, In actual my query is if we have to pay interim dividend in the same financial year for which we are paying the interim dividend ?
13 July 2012
Interim dividends are first paid and then appropriated from profits.
If provision for dividends account exits, then we consider the interim dividend account to be similar in nature to the provision for dividends account. Interim dividend account is treated as a current account or a non-current account accordingly as the provision for dividends account is current or non-current.
However there is no provision regarding dates of payment of Interim Dividend but generally it is paid in d same financial year.
CAclubindia
