21 April 2017
As per the latest amendment, there can be 3 scenarios
1. Proposed dividend shown in Balance sheet - the same has to be reversed. Proposed div Dr to P&L. Show the prposed dividend in Notes to Accounts 2. If there is no proposed divided shown but in question it is provided that company has proposed the dividend but not adjustment has been made in the books - Then Nothing to do. Just show this in Notes to accounts. 3. If dividend is DECLARED before balance sheet date. - In that case it is not a proposed dividend so new amendments will not apply. I t will be treated in the same way we used to treat earlier.
This treatment is will be common in Amalgamation/Consolidation/Goodwill.
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