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aman kawad

aman kawad

CA Inter

7K+

30-Jun-20 10:52

15

ACCOUNTING STANDARDS - 20 EPS

Sir As we take the cumulative preference shares of unpaid dividend every year Then how will the next year have the dividend of the previous year including as we are making sure that no dividend outstanding balance remains For eg for two year dividend is 500 each The first year we including 500 and next year how can we include 1000 as we already included 500 previous year

Answers (3)

ruchi lahoti

ruchi lahoti

Moderator

30-Jun-20 12:12

The amount of preference dividends for the period that is deducted from the net profit is - the full amount of required preference dividends for cumulative preference shares for the period, whether or not the dividends have been provided for.

aman kawad

aman kawad

CA Inter

7K+

30-Jun-20 12:22

So this means That assume we have a profit for previous year as 100000 and current year as 150000 Then dividend constant at 10000 so in calculating the EAESH YEAR 1 100000-10000 YEAR 2 150000-20000 AS cumulative effect whether or not paid Correct? Ma'am Then should we take the cumulative dividend from the earliest period or not?

ruchi lahoti

ruchi lahoti

Moderator

30-Jun-20 14:34

aman kawad

aman kawad

CA Inter

7K+

30-Jun-20 12:22


So this means That assume we have a profit for previous year as 100000 and current year as 150000 Then dividend constant at 10000 so in calculating the EAESH YEAR 1 100000-10000 YEAR 2 150000-20000 AS cumulative effect whether or not paid Correct? Ma'am Then should we take the cumulative dividend from the earliest period or not?

The amount of preference dividends for the period does not include the amount of any preference dividends for cumulative preference shares paid or declared during the current period in respect of previous periods