Can a dividend payment be declared retrospectively? For example, if my company's year end is 31 December 2024, accounts are prepared before 30 September 2025 (i.e., within nine months), and if a dividend is declared after the year end but within the nine months, can the dividend be shown in the accounts of 31 December 2024, or does it have to be shown in the next year's accounts (i.e., 31 December 2025?). 

Arthur replies: 

Unfortunately, it is not possible to do as you have written. For example, see www.accaglobal.com/uk/en/technical-activities/uk-tech/in-practice/2023/april/practical-issues-dividend-distributions, where the ACCA state: ‘The dividend obligation is only created on the date of declaration. Therefore, any dividend declared after the year end for previous year accounts would only be deemed to be paid in the year of declaration. It will be fraudulent to backdate any dividend’.