Preference Dividend

Dividends in Arrears
Dividends in arrears are dividends that have been declared but remain unpaid by the due date. These unpaid dividends must be disclosed in the notes to the financial statements to inform investors and stakeholders.
Preference Dividend
A preference dividend is a type of dividend that is paid to holders of preference shares and often carries preferential rights compared to common share dividends. This term is closely associated with cumulative preference shares, especially concerning unpaid dividends from prior periods.

Accounting Terms Lexicon

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