Hi there If we have only paid a portion of the approved dividend for the year, can we: i) subtract the total approved dividend from total earnings attributable to shareholders to get our retained earnings (instead of the paid portion only), and ii) show the amount of dividend outstanding under Current Liabilities as 'Dividend Due' ?
Your approach would be fine - although as far as CT2 is concerned dividends are simply "proposed" (no impact on balance sheet, as unapproved by shareholders) or "approved and paid" (so deducted in full from retained earnings).
Thanks Simon Reason I asked that is because the financial ratios to be calculated later will be different under different approaches (eg: with the addition of the item 'dividend due' under current liabilities when calculating (say) the current ratio). Hope this is still ok. Cheers!
