Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
26 October 2009Hey can any1 help me out with the treatment of Dividend received in the following case.
Company finalised Books on 31/3/09..It received div from say A ltd on 1/7/09..Should the auditor treat it as a item for 09 10 as per AS 9 ??
I got two answers. One from compilation where they said its an item for 09 10 as per AS 9 and other from study material which went like its a divident pertaining to yr 08 09 so its to be treated for the year 08 09 itself..
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 27 October 2009
Dear Hareesh,
Dividend can not be accounted on accrual basis as you do not the amount of dividend you will receive.It is accounted on receipt basis.
In your case,the dividend income should be treated as income for the financial year 2009-10 though it relates to the financial year 2008-09.
Regards,
Kajri.
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 27 October 2009
agree with KAJRI.......................
CAclubindia
