CA Priyaadarshini (CA) (105 Points)
14 February 2012Hi all!
I hear that as per revised schedule VI, dividend income should be recognised only when the right to recieve dividend arises before the balance sheet date.This is in line with AS 9 as well. Can anyone tell where is this specified in New Schedule VI?
Regards,
Priya
VDShah
(Finance & Legal Manager)
(45 Points)
Replied 14 February 2012
Despite all the changes in dividend rules...I really hope that someday the DDT (Dividend Distribution Tax will go away.)! It amounts to double taxation.
Anyway, even I was looking for the New Schedule..
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 29 February 2012
Hi Priya,
With respect to your query for presentation part of Dividend, It is been specifically given in Revised Schedule VI that Dividend will be shown by way of Notes rather than on the face of Financial Statement by way of Provision.
But It also says that Act and Accounting standard have supremacy over the Revised Schedule VI..so till the time AS 4 Continegencies and Events Occuring after the Balancesheet Date is not revised in line with Revised Schedule VI, AS 4 will rule over new Schedule.
Requirement of AS 4:
"Dividends stated to be in respect of the period covered by the Financial Statements, which are proposed or declared by the enterprise after the Balance Sheet date but before approval of the Financial Statements, should be adjusted."
Thus, Disclosure will be made as per AS 4 via creation of provision as well by way of Notes as per Revised Schedule VI.
Hope your query resolved.
Thanks
Mihir Doshi
CAclubindia
