- Original Poster
- #1
I'm looking through a previous set of full accounts (y\e 30 April), which were filed with CH (abbreviated version) & HMRC (Full version).
For the year in question the P&L statement shows a loss for the year - but the bit that surprises me is that in the Notes to The Financial Statements - there is an entry for Dividends payable - (dividend declared, I assume as opposed to paid), as well on the Balance Sheet - under Creditors: Amounts due within 1 year.
IIRC - a company can't declare\pay dividends if it doesn't have the means to do so. The only saving grace (if you could call it that) is that it wasn't paid, so could still be made void, but I've come across articles that suggest as long as the company is not in administration or about to be, it might not be a good idea to void a dividend.
Any advice on what to do with it? I'm inclined to leave it as a liability on the balance sheet (Long Term Liability) for the moment until,
1. I'm able to get the previous accounts, paperwork & work out what the hell took place, and
2. Let future income "offset" it (It's not the right term, but hopefully.....)
I just hope 2 isn't in the category of cooking the books.
The only issue is the "next" accounts are due for filing at the end of this month for the AP which has just finished, I don't have the time\resources to go thru everything with a fine tooth comb, in the next 1.5 weeks.
Cheers.
For the year in question the P&L statement shows a loss for the year - but the bit that surprises me is that in the Notes to The Financial Statements - there is an entry for Dividends payable - (dividend declared, I assume as opposed to paid), as well on the Balance Sheet - under Creditors: Amounts due within 1 year.
IIRC - a company can't declare\pay dividends if it doesn't have the means to do so. The only saving grace (if you could call it that) is that it wasn't paid, so could still be made void, but I've come across articles that suggest as long as the company is not in administration or about to be, it might not be a good idea to void a dividend.
Any advice on what to do with it? I'm inclined to leave it as a liability on the balance sheet (Long Term Liability) for the moment until,
1. I'm able to get the previous accounts, paperwork & work out what the hell took place, and
2. Let future income "offset" it (It's not the right term, but hopefully.....)
I just hope 2 isn't in the category of cooking the books.
The only issue is the "next" accounts are due for filing at the end of this month for the AP which has just finished, I don't have the time\resources to go thru everything with a fine tooth comb, in the next 1.5 weeks.
Cheers.
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