CERTYNEX IFRS ACADEMY

Velquine used to classify dividends paid as financing. It is acquired by a group that classifies dividends as operating and wishes to harmonise policies in its consolidated accounts (case data). How should the issue be handled in Velquine's own accounts?

A change is possible only if justified and documented, consistency remaining the rule; group harmonisation concerns the consolidated accounts first.

Change the classification each year to follow the current shareholder's policy, so as to align with the group's accounts.

Classify dividends paid as investing from now on, like the dividends received from its own investments.

Remove dividends paid from the entity's own statement, since the group already presents them in its consolidated statement.