Accrued dividend, Financial Management

It is an accounting term which refers to the balance sheet item that accounts for dividends that have been confirmed but not yet given to shareholders. Accrued dividends are taken as a liability from the declaration date and stays such until the dividend payment date.    


Accrued dividends must not be confused with accumulated dividends, which refer to dividends owing to holders of cumulative preferred stock. 

There are no accounting rules and regulations that mandate a time frame in which the accrued dividend entry must be recorded, however most companies generally book it some weeks before the payment date. After the dividend is declared, it turn into property of the record-date shareholder and is taken separate from the stock. This separation permits the shareholders to become creditors of the company, due their dividend payment, must a merger or some other corporate action takes place.

Posted Date: 7/27/2012 8:00:08 AM | Location : United States







Related Discussions:- Accrued dividend, Assignment Help, Ask Question on Accrued dividend, Get Answer, Expert's Help, Accrued dividend Discussions

Write discussion on Accrued dividend
Your posts are moderated
Related Questions
Explain the term - Timing of Benefits A more significant technical objection to profit maximisation, as a guide to financial decision making, is that it ignores the differen

Financial Repor ting The process of preparing the corporation's financial statements in accordance with generally accepted accounting principles. The statements prepare

Q. Example on hedge fund? Hedge Fund enters agreement to sell HK$ in six month's. At expiration the Hedge Fund requires to buy spot HKD and deliver these against the short futu

Q. Merits of Wealth Maximization Approach? Merits of Wealth Maximization Approach:- The wealth maximization schema is superior to the profit maximization approach because:

State about the Net present value Net present value maximisation is superior to the profits maximisation as an operational objective. As a decision criterion, it involves a co

Use of Beta to Partition Risk The total risk or variability in earnings can be attributed to two classes of factors: Marketwide factors which create variability in all

What is the financial leverage effect and what causes it?  What are the potential benefits and negative consequences of high financial leverage? Monetary leverage is the additi

#questi Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''''s co

Additional information required Specification of a time scale for the evaluation. Predict cash flow details year by year for period specified in the time scale. An approxima

The salem company bond currently sells for $955 has a 12% coupon interest rate and $ 1000 par value pays interest annually an