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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://www.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button] [/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://ie.frs102.com/members/premium-toolkit/section-22/” type=”big” color=”red”] Return to Section 22 Home[/button] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Distributions to owners
Extract from FRS 102 – Section 22.17-22.18
22.17 An entity shall reduce equity for the amount of distributions to its owners (holders of its equity instruments).
22.18 An entity shall disclose the fair value of any non-cash assets that have been distributed to its owners during the reporting period, except when the non-cash assets are ultimately controlled by the same parties both before and after the distribution.
OmniPro comment
As illustrated in example 5 above, payment of dividends on the equity classified shares are posted through equity. However no dividend can be paid unless there is distributable reserves. A dividend cannot be accrued unless it has been approved by the members in a general meeting before year end (with the exception of mandatory dividend payable).
For dividends paid on preference shares these are posted to interest costs in the profit and loss. This was illustrated in example 1 above. See example of layout in the disclosure section.
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