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Proposed Dividend

Mohit Gupta (article) (164 Points)

16 March 2019

Anyone tell me proposed dividend entry in the books of company as per latest amendment?
I'm little bit confused.

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3 Replies

Lisha Bansal (CA Finalist) (2595 Points)
Replied 16 March 2019

As per the latest amendment, proposed dividend is a contigent liability which is not to be recognised in books of accounts but not adjusted for. Thus, no entry is to be passed for recording proposed dividend.

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Piyush Sindwani (96 Points)
Replied 17 March 2019

As per Para 8.5 of AS-4 and Para 12 of Ind AS 10, proposed dividends are to be disclosed via notes to accounts and hence the same are not to be recognized as a liability under Short term provision as before.