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This excerpt taken from the BP 6-K filed Sep 7, 2005. Dividend
accrual
The present UK GAAP approach to the recognition of proposed dividends is to account for the dividend in the period to which it relates, e.g. the dividend proposed in February 2005 in respect of the final quarter of 2004 is accrued for in 2004. Under IFRS, the proposed dividend can be recognized only in the period in which it is properly authorized or paid, which, in the case of BP, is the quarter following that to which the dividend relates, i.e. the dividend proposed in February 2005 in respect of the fourth quarter of 2004 can be accounted for only in the first quarter of 2005. Therefore each balance sheet is adjusted to derecognize the dividend declared after the balance sheet date.
Increase (decrease) in caption heading
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