In the statement of profit or loss as other operating expense. In the statement of other comprehensive income as a decrease in equity. In the statement of profit or loss as a financial expense. In the statement of other comprehensive income as an increase in equity.

Dividends paid to ordinary shareholders shall be presented?

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Gross Profit less operating expenses =?
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Zehab Osman
10-August-2015

In the statement of profit or loss as other operating expense.
In the statement of other comprehensive income as a decrease in equity.
In the statement of profit or loss as a financial expense.
In the statement of other comprehensive income as an increase in equity.

MIS Auditing Financial Accounting IFRS Tally ERP

Question added by Anil Lalwani , Chief Accountant , Al Ahli Hospital
Date Posted: 2016/10/16

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by Wilfredo Quito , Accounting Manager , DDC LAND INC.

From an accounting point of view, shareholders' equity is decreased by the total dividend amount on the date it is declared by a company's board of directors. An offsetting "dividends payable" entry is made into the account on the same date. When the dividend is finally paid to shareholders, the account is zeroed out and the company's cash balance is decreased by a corresponding amount.

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