how should cumulative preferred dividends in arrears be reported in a corporation's balance sheet note disclosure

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10-11-2022
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how should cumulative preferred dividends in arrears be reported in a corporation's balance sheet note disclosure

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SakshTiwari353 SakshTiwari353 · Answer 1 · 2022-11-15T23:55:08+01:00

The cumulative preferred dividends in arrears be shown in a corporation's balance sheet Note disclosure.

On a company's balance statement, how are cumulative preferred dividends in arrears displayed?

However, the dividends paid on cumulative preferred stock in arrears are disclosed in the balance sheet's footnotes, which frequently include a justification for the arrearage and a timeline for payment.

In what way are arrear dividends presented in the financial statements?

The footnotes to the financial statements contain information about the arrear dividends. Only the footnotes are mentioned because the corporation's board of directors has not yet declared, and in the event that it does, cumulative preferred shares will automatically receive the dividends from the prior years.

To Know more about Note disclosure.

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