6.1 ACIS211_Week_6_Lecture_1

Priceaproportionofmarketvaluebetween setdates

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Unformatted text preview: n Plans Dividend Election Plans (DEP) This is a choice made by shareholders between receiving: Cash dividends – to gain current profits now Shares – to turn current profits into profit generating potential or A combination of both The share component is valued at the strike price (a proportion of market value between set dates) Accounting for Dividend Accounting for Dividend Election Plans (DEP) Initial entry D EP treat ment (once amount known) Share Co mponent (Share issue) Cash Co mponent Dr Cr Dr Cr Dr Cr Dr Cr Div idends (-ve OE) Div idends Payable...
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