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Answers to questions

Chapter 11

Example 1

An entity has an accounting year end of 31 March. On 5 June 20X2 it paid a
final dividend relating to the year ended 31 March 20X2 of $10,000. On 15
January 20X3, the entity paid an interim dividend of $6,000 relating to the year
ended 31 March 20X3. It subsequently paid a final dividend of $8,000 relating
to the year ended 31 March 20X3 on 18 June 20X3.

Required:

What amount should appear in the statement of changes in equity for
dividends paid for the year ended 31 March 20X3?

Example 1: Solution

The dividends paid during the year ended 31 March 20X3 were as follows:

Final dividend re accounting year to 31 March 20X2 –
paid 5 June 20X2 $10,000
Interim dividend re accounting year to 31 March 20X3 –
paid 15 January 20X3 $6,000
–––––––
Dividends paid in the accounting year to 31 March 20X3 –
include in SOCIE $16,000
–––––––

Note that the payment made on 18 June 20X3 falls into the accounting year
ended 31 March 20X4 and is therefore ignored in the current year.

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