alleryStart learning →On settling a non-cash dividend, the difference between asset and payable goes to
ARetained earnings
BRevaluation reserve
CSecurities premium
DProfit or loss
Answer & Solution
Correct answer: D. Profit or loss
The difference is recognised in profit or loss and shown as a separate line item.
Keep practising Ind AS 10 Events after the Reporting Period
Browse all Ind AS 10 Events after the Reporting Period questions for CA Final, or explore more Financialreporting topics.
Related questions
Appendix A applies only where all owners of the same class of equity areA non-cash dividend liability is recognised once the dividend isWith a cash or non-cash choice, the dividend payable weighs fair value andA liability to pay a non-cash dividend is measured at theAppendix A to Ind AS 10 deals with the distribution ofInd AS 10 says 'approval for issue' where IAS 10 saysThe Ind AS 10 loan-waiver rule differs from IAS 10 because of changes made inMajor ordinary share transactions after year-end are