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