16.6 Dividends
　　A.Basic concepts
　　●Dividends are the share of profits paid out to shareholders.
　　●Dividends on preference shares are a fixed amount.
　　●Dividends on ordinary shares are expressed an amount per share.
　　B.Preference shares
　　●Redeemable preference share dividends are classified as finance costs.
　　●Irredeemable preference shares dividends are classified as dividends.
　　C.Ordinary dividends
　　●A company may pay a mid-year or interim dividend. The double entry is:
　　Dr. Dividends (Statement of change in equity)                    X
　　Cr. Bank
　　●At the end of the year companies may propose a dividend to the ordinary shareholders, this is a final dividend.
　　●Not recorded unless it has been declared (or confirmed) prior to the year end.
　　If this is the case, the double entry is:
　　Dr. Dividends
　　Cr. Dividends payable
　　●The balance on the dividends payable account is shown as acurrent liability
　　On the SFP.