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Dividends no longer to be shown in P/L statement

Dividends no longer to be shown in P/L statement

For accounting periods beginning 1 January 2005 dividends on ordinary shares are not to be shown in the profit and loss account statement but instead shown in a note to reserves.

Is everyone aware of this?

The changes were made to the standards as a result of ammendments to the Companies Act 1985 implementing the Modernisation Directive.
Philip Hodgson

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14th Mar 2006 16:15

final dividends year ended 31 December 2005
Under FRS21 and FRSSE 2005, for the final dividends to be recognised as a liability in the balance sheet at 31.12.2005, the dividend must be declared and minited prior to the year end. Previously, it was usual to put through a final dividend when discussing with clients at finalisation meeting. This now makes it difficult. How have you guys treated this issue?

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By yeboyye
23rd Oct 2005 10:26

Distribution
Following on from the change to the dividends layout may I ask another question.
On the current statutory format where should a distribution paid under HMRC ESC C16 be shown?
Thanks in anticipation.

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14th Oct 2005 12:00

Thank you Philip (H)
I don't think PhilipH is trying to give us new news, I think he is helping us keep up to date. I, for one, am most grateful!

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14th Oct 2005 13:15

much better this way
It makes much more sense to show the dividends as a deduction from reserves. why it has taken this long to alter the disclosure requirements beats me.

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By yeboyye
16th Oct 2005 10:20

dividends have been moved
Thanks Philip H. I was not aware of this.
I don't use a company accounts package and have to keep up to date myself.

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14th Oct 2005 08:49

Dividends no longer to be shown in P/L statement per FRSSE
At a recent meeting of small practitioners that I heard about, only one knew of the change, and the rest were reluctant to believe him!

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13th Oct 2005 17:08

Good to see someone is doing their CPD
Sorry Philip, not new news. I think most packages have the new formats out ready now

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