Dividends - slight dilemma!
Hollysan
Registered Posts: 68 Regular contributor ⭐
Hello everyone,
Would welcome your opinions on this one.... I prepared accounts for a new ltd co client last year using new accounts production software - the first accounts I had used it for. At the year end the directors had approved and minuted payment of final dividend but it wasn't actually paid until way into the next year. At the time I put them in as proposed dividends but this caused problems and I was advised by the software co. to reverse them and include in the notes as a post-balance sheet event.
Now preparing the second year accounts I am not sure how to post this years dividends. Obviously the final dividends from last year have to be on the p&l, but should I include the proposed dividends as well, or put in the notes as per last year? I feel uncomfortable about putting both on the p&l because they relate to different years, but would like to know what everyone thinks would be the ideal way of accounting for both sets of dividends, before I make a final decision about how to post them. I think I was a bit unsure last year with the new software, so not sure if I did the right thing...
Many thanks,
Hollysan
Would welcome your opinions on this one.... I prepared accounts for a new ltd co client last year using new accounts production software - the first accounts I had used it for. At the year end the directors had approved and minuted payment of final dividend but it wasn't actually paid until way into the next year. At the time I put them in as proposed dividends but this caused problems and I was advised by the software co. to reverse them and include in the notes as a post-balance sheet event.
Now preparing the second year accounts I am not sure how to post this years dividends. Obviously the final dividends from last year have to be on the p&l, but should I include the proposed dividends as well, or put in the notes as per last year? I feel uncomfortable about putting both on the p&l because they relate to different years, but would like to know what everyone thinks would be the ideal way of accounting for both sets of dividends, before I make a final decision about how to post them. I think I was a bit unsure last year with the new software, so not sure if I did the right thing...
Many thanks,
Hollysan
0
Comments
-
Hmm. Is your software up to date?
Dividends don't go on the P&L any more.
I wouldn't even mention a proposed one in the notes, although over-disclosure is perfectly acceptable.0 -
Thanks for the reply Dean. Yes the software is up to date, hence them telling me not to put in the proposed divis last year. Surely the dividend paid (this year) should go on the P&L?
Hollysan0 -
Nope. Dividends don't go in the P&L.0
-
Of course. The FRSSE; I think I have completely confused myself over the posting and the disclosures. Thanks for your help. Will go and have a lie down now.
Thanks again.
Hollysan0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 583 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership