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Hi there,
Our AFS are based on IFRS for SME's. We have recently paid a dividend to the shareholders. My question is, how do we capture this in our accounting system?
My understanding is that a dividend should not show on the Income Statement, but only reflect a reduced equity on the Balance Sheet. I believe there are two thoughts and you can reduce equity through the Income Statement though. So I am confused as to which option to go with.
If I have understood the IFRS paper correctly, the dividend withholding tax should be linked to the dividend and not split as a tax expense.
What is the correct way to account for the dividend and tax portion?
Thanks
David
Our AFS are based on IFRS for SME's. We have recently paid a dividend to the shareholders. My question is, how do we capture this in our accounting system?
My understanding is that a dividend should not show on the Income Statement, but only reflect a reduced equity on the Balance Sheet. I believe there are two thoughts and you can reduce equity through the Income Statement though. So I am confused as to which option to go with.
If I have understood the IFRS paper correctly, the dividend withholding tax should be linked to the dividend and not split as a tax expense.
What is the correct way to account for the dividend and tax portion?
Thanks
David