If proposed dividend of last year is paid during the current year then will it shown as an expense in - Accountancy - Cash Flow Statement

Question

If proposed dividend of last year is paid during the current year
then will it shown as an expense in statement of profit and loss of
current year?if yes then why dont we add that dividend from
operating activities in cash flow statement?

Neha Chopra · Accepted Answer

Dear Student

Proposed dividend of last year is paid in the current year, But in
current year's financial statement this payment is not shown as an
expense in the statement of profit and loss account, It is the
liability of dividend i e last years proposed dividend which is
paid in the current year

Therefore payment of last year's proposed dividend would result in
the reduction of a liability

Regards

If proposed dividend of last year is paid during the current year then will it shown as an expense in statement of profit and loss of current year?if yes then why dont we add that dividend from operating activities in cash flow statement?