Payment Date
Accounting glossary · Understand, connect, apply
The payment date is the date on which a declared dividend is paid to eligible shareholders.
Example
A company settles a dividend payable of 5,000 by transferring cash on 30 April.
Remember the difference
Payment reduces cash and the dividend payable. It does not create the dividend expense or a second reduction of retained earnings.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
← Return to the accounting glossary