Dividend on Shares newly issued

Mayur Khetshi Nisar (Practice) (139 Points)

09 June 2011  

Dear Friends,

If new shares are issued after 31st March 2011, but before the record date, they are entitled to dividend declared in AGM.

However, since they were not existent on 31st March 2011, will provision of dividend on the same tantamount to non following of AS 4 - Events occuring after balance sheet date. 

It says that events occuring after Balance Sheet Date (in our case new shares) should not impact the Accounts (declaring of dividend).

Please guide.

Regards

Mayur