DFS - Treatment of Dividends and other issues

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
After going over the amended paper for the new IAS I noticed that the P&L and BS totally disregarded dividends (both paid and proposed). Does anyone know why this is?

Also should I be revising consolidated P&L accounts (sorry, income statements) for when one company invests in another and you need to combine the two?

Any help would be great!

Thanks

Bry

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    Dividends paid are now only shown in the SOCIE. Any proposed are shown as a note.

    I thought that consolidated accounts always come up and you need to know them back to front. Have you not doen them?

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    By consolidated I mean when one company investes in another and you usually get asked to prepare a BS for it (after calc minority interest, goodwill etc) but I haven't really looked into the P&L for this.

    So if dividends that were proposed in the previous year and paid this year nothing would appear in the P&L or BS? Also proposed dividends at the end of the current year only get mentioned as a note?

    :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    Consolidated income statement could come up as easily as the balance sheet could.

    AS for the dividends, it will affect the retained earnings but I'm not sure what AAT have said about the dividend note. If you do a search, people who are taking DFS have been discussing this. I have just done the related ACCA paper under international standards so can only state what we have done in that one but don't want to confuse you if something isn't covered under AAT.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    Cheers. I'm still struggling to understand what happens with the dividends! :(

    Usually paid would just appear on the P&L, proposed the P&L and BS (under liabilities). So they'd both just go to retained earnings?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    Dividends paid come off the retained earnings. Proposed dividends you do nothing with.

    Good luck

    Susan
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues

    Dont you put a note?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Treatment of Dividends and other issues
    burnawn wrote:
    Dividends paid come off the retained earnings. Proposed dividends you do nothing with.

    Good luck

    Susan
    Ahh I see it now.

    Thanks everyone for your help :wink:

Categories

Privacy Policy