Dividends declared definition
/What are Dividends Declared?
Dividends declared refers to dividends that have been authorized by the board of directors , but not yet paid out to investors . Income investors want the amount of dividends declared to be a high proportion of reported income, so the amount declared can be an ongoing issue between investors and a company’s board of directors.
Accounting for Dividends Declared
Dividends declared are recorded in the accounting records as a liability of the corporation . If the dividends are to be paid within one year (as is usually the case), then this liability is classified as a current liability on the balance sheet of the issuing entity.
