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As4

aditya kona (student) (35 Points)

01 October 2015

Is proposed dividend adjusting or non adjusting event??

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8 Replies

Shobhit Jain (CA) (4892 Points)
Replied 01 October 2015

Though it is non adjusting event,it should be adjusted because of legal requirements and its special significance

aditya kona (student) (35 Points)
Replied 01 October 2015

In study material of ICAI its given that disclosure is enough

CA DAVINDER SINGH GILL (CA in service) (22 Points)
Replied 01 October 2015

Its an adjusting event Proposed dividend do not qualify to be a adjusting event as per the definition in AS4 However, AS 4 clearly specifies that proposed dividend should be treated as a adjusting event Thus although proposed dividend do not qualify as per the definition of adjusting event but it is an adjusting event.

Dixita panchal (Student) (211 Points)
Replied 02 October 2015

As it is statutory event,it becomes adjusting event.

apram (ca final) (22 Points)
Replied 02 October 2015

As4 has 2 exceptions where non-adjusting is also treated as adjusting- 1-when going concern concept is violated. 2-in case of proposed divid. So it is adjusting.