20 August 2007
whether the provision for proposed dividend falls in the definition of provisions as covered by AS 29 ? If not, whether it is governed by any another accounting standard ?
20 August 2007
In my opinion It should not cover under AS 29 because it is not emerging out due to past obligation. Only proposed divided binding upon company after in AGM declaration. As per AS 9 revenue of this item also recognised after AGM declaration. It can any time revoke before the declaration, it is only simple provision which is set aside for future payment if share holders permit it .
CAclubindia
