Dividend in stock/shares rather than cash

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bambulka
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Joined: 17 Mar 2021, 16:25

Dividend in stock/shares rather than cash

Post by bambulka »

What is the entry if company pays dividend in shares rather than in cash to its executives?
JRSB
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Re: Dividend in stock/shares rather than cash

Post by JRSB »

You may be confusing things here? Dividends go to the shareholders - or are your executives also the same people as the shareholders? If you're issuing new shares to the Board as remuneration then that's a share based payment. If you're issuing new shares to shareholders then its probably a capital event, like a bonus issue, probably governed by your country's law.
bambulka
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Joined: 17 Mar 2021, 16:25

Re: Dividend in stock/shares rather than cash

Post by bambulka »

Executives have received performance stock units three years ago which now vested. These PSUs holders are also entitled to dividend equivalent which is now paid in shares along the PSU being vested. So new shares are issued. Thanks.
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Marek Muc
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Re: Dividend in stock/shares rather than cash

Post by Marek Muc »

so it's still part of the share based payment arrangement, it should have been taken into account when measuring the fair value of PSU granted

and then:
https://ifrscommunity.com/knowledge-bas ... hin-equity
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