According to AS-4, Contingencies and Events Occurring after the Balance Sheet Date, where should Proposed dividend be shown in the financial statements of a company?

In the Notes to Accounts

The Proposed dividend is a dividend amount proposed by the Board of Directors and later approved by the shareholders during their Annual General Meeting. This proposal occurs after the completion of the company's annual accounts for the year. The Annual General Meeting is held subsequently, often in the next financial year. The shareholders have the authority to reduce the proposed dividend amount, but they cannot increase it beyond what has been proposed by the Board of Directors. As the declaration of the proposed (final) dividend is contingent upon shareholders' approval, it is considered a contingent liability. As per AS-4, Contingencies and Events Occurring after the Balance Sheet Date, the Proposed dividend is presented in the Notes to Accounts section of the financial statements. Once the shareholders declare the Proposed dividend during the current year's Annual General Meeting, it becomes a liability for the company and is recorded in the books. Consequently, the Proposed dividend of the previous year, once approved by shareholders in the current year's Annual General Meeting, is accounted for during the current year.