Dividends - slight dilemma!

Hollysan

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

deanshepherd

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.

Hollysan

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?

Hollysan

deanshepherd

Nope. Dividends don't go in the P&L.

Hollysan

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.

Hollysan