As-4

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riteshnandi (Querist)
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18 November 2009 1.why dividend is exceptional item under As-4.as on balance sheet date it is not known that whether comapny will provde for dividend or not even dividend is provided in that year p&l only.why bcoz its a non adjuestig item as per the defination of As-4.

shakuntala chhangani

shakuntala chhangani (Expert)
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28 November 2009 Hi Ritesh, since dividend is declared in relation to the profits of a particular year, it is the appropriation of the income of that year and consequently shoud appear in P/L a/c of that year. the only thing that the amount is determined after the balance sheet date(but obvious as FS are prepared after closure of accounts and on the basis of profit u declare dividend)does not make it the item of the next year. However, if u go as per as 4, this will become new event and will not come into accounts. therefore, this has been made an exceptional item so as to enter it into respective years profit and loss A/c. regards, CA Shakuntala Chhangani

riteshnandi

riteshnandi (Querist)
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03 December 2009 1.thanks and i got the answer by reading of shedule VI of compnies Act 1956.that speaks abt dividend that dividend should be provided in a year to which it relates.this makes dividend an exceptional item in AS 4 bcoz AS can not supercede Law.this is the logic bocoz of institute made dividend exceptional item in AS 4.this is my line of thinking correct me if i m thinking wrong.

2.if u raed relevent IFRS regarding Joint venture so ifrs said if u sale assetes to JCE so at the time of sale itself joint venturer will book only that profit which is due to other venturer.and this look more transprate teatment.
3.madam i want to ask a question regarding goodwill.suppose if u want to calculate value of goodwil of an entity so wht treatment u wil give to goodwil already appearing in Balance sheet of that entity.

shakuntala chhangani

shakuntala chhangani (Expert)
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04 December 2009 Hi again Ritesh. u first read AS 26 then we will discuss the point. I can give u answer in 1 sec. but i m not preferring that. Regards, CA Shakuntala Chhangani

riteshnandi

riteshnandi (Querist)
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04 December 2009 yes madam i read As 26 along with As 14 and my understanding says if the goodwill is valuted goodwill means delibrately valuted and paid then it should be taken like other assets,and if its As 14 goodwill means result of negotiation then it should be ignore being a loss on amalgamation.plz reply on my understanding i just ask queries to get my understanding clear.thanks

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