Blogger
Share this content
0
7
1676

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

Replies

Please login or register to join the discussion.

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?

Thanks (0)

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.

Thanks (0)

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!

Thanks (0)

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.

Thanks (0)

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.

Thanks (0)

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!

Thanks (0)

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

Thanks (0)