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Reader Comments on ::   Dividend Income
Other thing I forgot to mention is Accounting Policies
Under the Note on Changes to Accounting Policy, we need to give some comment on the impact of changing to BAS. The change to not showing a provision for final dividend may be an item you could disclose here.

Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13
You also need to think about whether you are change the comparative for the previous year. The CEO, Directors and Shareholders are used to seeing a dividend declared in the P&L account and suddenly in 2013 there won't be a dividend.
BFRS 1 First Time Adoption doesn't compulsory until 2019. With BFRS 1 the comparatives have to be changed. However clause 42 in the Conceptual Framework says comparative figures should be adjusted so that they are helpful to readers.
If you decide to change the comparatives, the P&L comparatives won't show any dividend declared. The Statement of Changes in Equity will show the the dividend in the year in which it is paid. The payment will be in the Cashflow Statement, so the 2 statements will be in line. The provision for dividend payment has to be reversed, and the actual payment shown
Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13
BAS 18 refers to the treatment by the recipient but the same treatment should be adopted by the paying company
Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13
Please refer para 28 and 29(c)of BAS 18 for recognizing dividend income.
Posted By: Sonam Wangdi      Posted on: 2018-05-15 11:57:13
Dividend income is recognized in the year it is declared in the AGM or whether we can recognize it when there exists obligation to pay as on the date of reporting period.
Posted By: Sonam Choeden      Posted on: 2018-05-15 11:57:13

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