Dividends, and everything related to them cause complications for accountants. One simple reason for this is that an additional minefield of legal requirements & regulations come into play when an accountant is dealing with dividends.
The attached report is produced by the FRC, is practice informed, and discusses best-practice regarding the disclosure of dividends, and dividend policy, to stakeholders. For those with limited time, there is a “quick read” section which serves as an excellent executive summary at the start of the report.
FRC Lab Report
Following ESMA’s (European Security and Markets Authority) introduction of guidelines on the use of Alternative Performance Measures (APMs) in regulated information, the FRC has performed a desktop review on a sample of interim statements published by listed entities since the guidelines were introduced.
In the attached I have highlighted the key points to those with a primary interest in IFRS.
In June 2015 the FRC reported on what investors said they valued in the annual report and accounts of smaller listed companies. Attached is a summary of the feedback received.
FRC Letter Link