Talking Cents
December November October September August July June May April March February January |
Our small business accountants in Melbourne explain the different types of dividendsDividends are normally paid in cash, but they can also be paid in other forms such as shares. Our small business accountants in Melbourne identify that when dividends are distributed, they are stated as a per share amount and are paid only on issued shares. When and how a company distributes dividends is called a company’s dividend policy. Reporting Cash Dividends Our accountants for small business in Melbourne record dividends on two different financial statements: • Dividends declared during the year are reported on the statement of changes in equity. Share Dividends A share dividend is a distribution of a company’s ordinary shares to existing shareholders. Preference Shares Preference shares are a form of shares that receive one or more priorities over ordinary shares. Usually, preferred shareholders relinquish the right to vote in exchange for preference to dividends and preference to assets upon liquidation of the company. For more information regarding dividends, please contact our small business accountants in Melbourne today. |