Company Dividends

[stubarny]

Hello, please could you give me a hand with the following question?

Question:

The following information is available about a company's dividends:

2005
Sept - Final dividend for the year ended
30 June 2005 paid (declared August 2005): $100,000

2006
March - Interim dividend for the year ended
30 June 2006 paid: $40,000
Sept - Final dividend for the year ended
30 June 2006 paid (declared August 2006): $20,000

What figures, if any, should be disclosed in the company's statement of comprehensive income for the year ended 30 June 2006 and its statement of financial position as at that date?


Answer:

statement of comprehensive income: nil
statement of financial position: nil

Textbook explanation: the dividends actually paid will go through the statment of changes in equity. The final proposed dividend of $120,000 is disclosed in the notes to the statement of financial position.)



Why should the $20,000 payment be disclosed in the notes to the statement of financial position (as part of the $120,000) if it has already been paid in full?

Many thanks,

Stewart

[Dagabie]

RE:COMPANY DIVIDENDS

Answer:

Year ending:
01/07/2004 - 30/06/2005

NIL

Year ending:
01/07/2005 - 30/06/2006

Dividends declared and paid $100,000 + $40,000 = $140,000.

Year ending:
01/07/2006 - 30/06/2007
Final dividend declared(Aug. 2006) and paid $20,000.


Disclosure:
Year ending 30/06/2006.

Statement of changes in Equity: $140,000.

Statement of changes in financial position: Total retained profit carried forward NET of $140,000. The net retained profit figure will be picked from the statement of changes in Equity.