Accounting querry

Hi Sankaran,

I hope this helps. But pls. try & confirm it before you use it.

"There are events which, although take place after the balance sheet date, are sometimes reflected in the financial statements because of statutory requirements or because of their special nature. Such items include the amount of dividend proposed or declared by the enterprise after the balance sheet date in respect of the period covered by the financial statements. Thus, dividends which are proposed or declared by the enterprise after the balance sheet date but before approval of the financial statements, should be adjusted as per para 14 of AS 4."

Lucy

As for as Interim dividend is concerned, it will be acounted in the year in which it is declared (i.e) paid.Hence no question of making provision for the year ended 31-3-2005 since the interim div declared in July 2005

I am in agreemnt with this view. Further in this case if any new issue has been made then the same is also eligible for dividend. The similat thing has been done by Jindal Poly film limited recently while coming out for an issue.

As for as Interim dividend is concerned, it will be acounted in the year in which it is declared (i.e) paid.Hence no question of making provision for the year ended 31-3-2005 since the interim div declared in July 2005

i completely agree with the view that interim dividend should be provided only in year it is declared.

i completely agree with the view that interim dividend should be provided only in year it is declared.

There is no option and u will have to provide it in books for year (to which it relates)ie 04-05.this position is upheld by AS4 of ICAI and Schedule 6 also requires the same.

no