The Institute of Chartered Accountants of India ( ICAI ) has issued Frequently Asked Questions (FAQs) on ‘Presentation of Dividend and Dividend Distribution Tax.
The ICAI has clarified the issues regarding the presentation requirement as per IndAS in India for dividend and dividend distribution tax.
“If a financial instrument is classified as debt, the dividend or interest paid thereon is in the nature of the interest which is recognised in profit or loss. Dividend or interest paid on a financial instrument which is classified as equity should be recognised in the Statement of Changes in Equity”, ICAI said.
