Basic question I know, but can someone confirm this for me:
My client has a 31/12 year end. He declared an interim dividend on 31/12 which was actually paid on 4th Jan 12.
Am I correct in thinking that an interim dividend is only legally due when paid? (i.e I should disclose but not provide)
Many thanks
Replies (2)
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No - I think you are not correct
The directors declare interim dividends by means of a board resolution. Once passed, it is an obligation - in this case, by close of business on the accounting date. I think it should be included in the accounts as a dividend in the year and as a creditor.