The Australian Accounting Standards Board (AASB) issued a proposed agenda rejection statement on the recognition of franked dividend revenue under AASB 118.  
 
At present, the accounting standards do not specify whether an entity should recognise franked dividend revenue on a net or gross basis. The AASB considers that franked dividend revenue should continue to be recognised on a net basis, as there is no evidence of divergent practice. This is consistent with the decision taken by the UIG when it considered this issue in 1998, although it did not at the time consider the query warranted the formal issue of an Abstract. 
 
The Institute supports the AASB's view that franked dividends should be recognised on a net basis, but has asked the AASB to reconsider the issuing of an interpretation on this topic rather than issuing a rejection statement. 
 
View the Institute submission here. 
 
This article is current up to 5 December 2007