Declaration of Final Dividend

Comparison between Indian GAAP and Ind-AS/ IFRS

As per the requirements of AS 4, dividends in respect of the period covered by the financial statements, which are declared after the balance sheet date but before approval of the financial statements are recognised as liability in the financial statements. Further, Schedule III to the Companies Act, 2013 also prescribes for disclosure of proposed dividend in the Notes to Accounts.

However, under Ind-AS/ IFRS, declaration of final dividend after the balance sheet date is considered as a non-adjusting event and liability for dividends declared is recognised only in the period of declaration.

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