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Dividends no longer to be shown in P/L account per FRSSE?

Paragraph 12.6 of the new FRSSE states that dividends on 'equity instruments' (ordinary shares) should be debited directly to 'equity'. In other words, are they no longer to be shown on the face of the profit and loss account?

For companies not applying the FRSSE, the sames rules are in FRS25 paragraph 35. Both standards apply to accounting periods beginning 1 January 2005, earlier adoption not allowed.

Have I understood this correctly? I have seen no comment on this major change.
Philip Hodgson


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16th Jun 2005 09:07

what is the problem?
dividends have never been a charge on current profit, but rather are a distribution from reserves!

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16th Jun 2005 09:41

Change of presentation

I just want to make sure I understand this properly. Dividends will no longer be shown on the face of the profit and loss statement. They will now be shown in the profit and loss note to the balance sheet instead. To me, this is major change that has received virtually no comment.

Is this your understanding?

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