Bharat Gahlotbharat gahlot asked 2 years ago
2 Answers
RaviRavi Staff answered 2 years ago

no its not a contravention of AS 9, when dividend is declared on share investment, share prices increase as it become cum dividend, NAV of mutual fund increases (say +3) because of daily valuation rule and profits of MF automatically increase, so dividend is recognised automatically.
when price effect reverses (Say -3) we book actual dividend receivable (Say +3) so dividend effect is booked automatically when declared, no contravention of AS 9

Auditaudit Staff answered 2 years ago

then sir in books of MF the dividend has to be shown in P&L or should be reduced from cost of such invt. as such dividend is pre acquisition dividend then entry would be :-
 div. rec. a/c dr. to invt. and then bank a/c dr. to div. receivable 
so P&L would not impact in such case?

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