The company I work for has issued some preference shares that pay a fixed dividend once a year. I was intending to divide the dividend by 12 and accrue that amount each month and then when the dividend is paid, release the accrual. Obviously the accrual will appear in the balance sheet under current liabilities, I was going to show the other side on the monthly P+L as "Preference share dividends" below interest paid. I know this wouldn't be the case if these were dividends on ordinary shares or dividends on preference shares where there was no obligation to pay a dividend. In our case there is an obligation, is this the correct way to record them? Thank you.