Notes to Accounts: Dividends Paid

Hobbaman

I am completing a set of accounts for a small company. The company paid dividends to both directors during the year. To comply with company law do I have to mention in the abridged accounts the details of the dividends paid .... if the answer is yes, where in the accounts do I put these details and what is the correct wording? Also, is it the exact same rules for the full set of accounts that the Directors receive?
Perhaps there is an Accountant out there that can help me with this. This is the 1st set of company accounts that i have done. I mostly do sole trader accounts. Thanks

whatawaster

I actually don't think i've ever dealt with dividends, in any of the hundreds of sets of company accounts i've done!

Anyway . . . i think

- there should be a note in the director's report
- also a note in the accounts stating the amounts paid already and still payable, and the comparatives for last year of course.

I'd recommend you read this - guidelines on financial statements for small companies.

http://www.frc.org.uk/documents/pagemanager/asb/FRSSE/FRSSE%20Web%20optimized%20FINAL.pdf

I'm honestly not 100% sure if these disclosures apply to abridged accounts, but i'd presume they do.

Da GOAT

A note should always be in the dir report even when none are paid.

only dividend actually paid can be put in the accounts, any which are accrued for are removed from the accounts.

been awhile since i seen dividends though, i think it used to be put on P&L separately. but now put into reserves note.