Dividend Disclosures in the Statement of Changes in Shareholders Equity

Rule ID: DQC_0178
Status: Final

Release date: June 27, 2024
Effective date: August 31, 2024

Rule function

This rule applies to dividend disclosures reported in the Statement of Changes in Equity using the StatementEquityComponentsAxis. The rule is comprised of nine components that are designed to determine that the filer has selected the correct elements in the Statement of Changes in Equity.

The first component of the rule checks that dividend elements used with the retained earnings member are reported with a positive value. The impact on retained earnings should reduce the retained earnings balance. Because these a debit balances the values should be positive.

The second component checks if the filer has reported dividends against APIC and if the value is positive. Dividends should generally be deducted from retained earnings and not deducted from additional paid in capital. In certain cases dividends can be deducted from paid in capital, but in these cases the element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings defined in the taxonomy should be used.

The third component checks if dividends paid in cash cause the value of APIC to increase. If APIC is increasing due to the declaration of dividends this indicates that the filer is issuing a stock as a dividend. This has the impact of increasing APIC and reducing retained earnings. In these cases the elements DividendsCommonStockStock, or DividendsCommonStock should be used, rather than using the Cash Dividend element of DividendsCommonStockCash and DividendsPreferredStockCash.

The fourth component checks if the filing includes a value for dividends using the concepts DividendsCommonStockStock or StockIssuedDuringPeriodValueStockDividend with a value using the retained earnings member that is the same as the default value, and no value reported using the APIC member. These elements represent a dividend paid in stock, but no impact has been reported on the value of APIC. If this is an actual dividend paid in stock it should include the retained earnings member and not have a value in the default. If it is a dividend paid fully in cash then the element DividendsCommonStockCash should be used. If it is partial stock and cash then the element DividendsCommonStock should be used.

The fifth component checks if dividend line items have been used with the appropriate members of the components of equity axis. The rule identifies inappropriate members used with the StatementEquityComponentsAxis and dividend line items. The following members should not be used with dividend line items:

Member	Dividend Line Items
RetainedEarningsAppropriatedMember	All dividend line items
CommonStockMember	DividendsPreferredStockCash, DividendsPreferredStock, DividendsPreferredStockStock, DividendsPreferredStockPaidinkind, DividendsCash, DividendsCommonStockCash
CommonStockIncludingAdditionalPaidInCapitalMember	DividendsPreferredStockCash, DividendsPreferredStock, DividendsPreferredStockStock, DividendsPreferredStockPaidinkind
PreferredStockMember	DividendsCommonStock, DividendsCommonStockStock, DividendsCommonStockCash, DividendsCommonStock, DividendsCommonStockPaidinkind, DividendsPreferredStockCash, DividendsCash
PreferredStockIncludingAdditionalPaidInCapitalMember	DividendsCommonStock, DividendsCommonStockStock, DividendsCommonStockCash, DividendsCommonStock, DividendsCommonStockPaidinkind
TreasuryStockPreferredMember	All dividend line items
TreasuryStockCommonMember	All dividend line items
AccumulatedOtherComprehensiveIncomeMember	All dividend line items
ComprehensiveIncomeMember	All dividend line items

The sixth component checks if a negative value has been reported for the element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings when it is used with the retained earnings member.

The seventh component checks if checks if a negative value has been reported for the element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings when it is used with no member on the equity components axis.

The eight component if a dividend line item has been used with a redundant class of stock axis. This identifies where a member should not be used with a dividend concept as the type of stock declared is already communicated with the concept name, and the dimensions provides no additional disaggregation. This rule checks the concepts CommonStockDividendsPerShareDeclared and PreferredStockDividendsPerShareDeclared.

The ninth component checks if The filing includes a value for the concepts StockIssuedDuringPeriodValueDividendReinvestmentPlan or StockIssuedDuringPeriodValueStockDividend using the RetainedEarningsMember that is positive. These elements are a credit elements so, the value must be entered as a negative amount to reduce retained earnings.

Problem solved by the rule

The rule identifies where the filer has used inappropriate combinations of dividend elements in the Statement of Shareholders Equity. These rules help filers to select the correct elements and to tag the values with the appropriate signs.

Example rule message 1

The filing includes a value for dividends using the concept us-gaap:DividendsCommonStock and the retained earnings member with a value of -977,000. Dividends must be deducted from retained earnings. Please check that the sign of the dividends value is positive.

The properties of this fact are:
Period: 2022-01-01 to 2022-03-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:RetainedEarningsMember
Unit: USD

Rule Element ID: 10134
Rule version: 24.0.0RC1

Example rule message 2

The filing includes a value for dividends using the concept us-gaap:DividendsCommonStock and the the additional paid in capital member with a value of 5,035,000. Dividends should generally be deducted from retained earnings and not deducted from additional paid in capital. In certain cases dividends can be deducted from paid in capital, but in these cases the element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings defined in the taxonomy should be used. Please update the filing to reflect this.

The properties of this fact are:
Period: 2022-01-01 to 2022-03-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:AdditionalPaidInCapitalMember
Unit: USD

Rule Element ID: 10135
Rule version: 24.0.0RC1

Example rule message 3

The filing includes a negative value for dividends using the concept us-gaap:DividendsCommonStockCash and the the additional paid in capital member with a value of -131,000. If APIC is increasing due to the declaration of dividends this indicates that the filer is doing issuance of stock as a dividend. This has the impact of increasing APIC and reducing retained earnings. In these cases the elements DividendsCommonStockStock, or DividendsCommonStock should be used.

The properties of this fact are:
Period: 2022-10-01 to 2022-12-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:AdditionalPaidInCapitalMember
Unit: USD

Rule Element ID: 10136 Rule version: 24.0.0RC

Example rule message 4

The filing includes a value for dividends using the concept us-gaap:StockIssuedDuringPeriodValueStockDividend with a value of 1,706,000. This value represents a dividend paid in stock, but no impact has been reported on the value of APIC. If this is an actual dividend paid in stock it should include the retained earnings member and not have a value in the default. If it is a dividend paid fully in cash then the element DividendsCommonStockCash should be used. If it is partial stock and cash then the element DividendsCommonStock should be used.

The properties of this fact are:
Period: 2021-07-01 to 2021-09-30
Dimensions:
Unit: USD

Rule Element ID: 10137
Rule version: 24.0.0RC1

Example rule message 5

The filing includes a value for dividends using the concept us-gaap:DividendsCommonStockCash with a value of -1,000. This value is reported with the dimension member CommonStockMember. This member should not be used with the concept us-gaap:DividendsCommonStockCash. Please check the filing and select a more appropriate concept.

The properties of this fact are:
Period: 2020-01-01 to 2020-12-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:CommonStockMember
Unit: USD

Rule Element ID: 10138
Rule version: 24.0.0RC1

Example rule message 6

The filing includes a negative value for dividends using the concept us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings and the the additional paid in capital member with a value of -210,791,000. The element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings should not be reported with a negative value. Check the disclosure and determine if the element DividendsCommonStockStock is more appropriate as this element is expected to increase APIC when a dividend distribution is made.

The properties of this fact are:
Period: 2020-01-01 to 2020-12-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:AdditionalPaidInCapitalMember
Unit: USD

Rule Element ID: 10145
Rule version: 24.0.0RC1

Example rule message 7

The filing includes a negative value for dividends using the concept us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings in the default. The element AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings should not be reported with a negative value.

The properties of this fact are:
Period: 2023-01-01 to 2023-03-31
Dimensions:
Unit: USD

Rule Element ID: 10146
Rule version: 24.0.0RC1

Example rule message 8

The filing includes a value of 20 for dividends declared using the concept us-gaap:PreferredStockDividendsPerShareDeclared and the dimension member of us-gaap:PreferredStockMember on the axis StatementClassOfStockAxis. This member should not be used with this concept as the type of stock declared is already communicated with the concept name, and the dimensions provides no additional disaggregation.

The properties of this fact are:
Period: 2022-03-02 to 2022-03-02
Dimensions: us-gaap:SubsequentEventTypeAxis=us-gaap:SubsequentEventMember, us-gaap:StatementClassOfStockAxis=us-gaap:PreferredStockMember
Unit: USD/shares

Rule Element ID: 10150
Rule version: 24.0.0RC1

Example rule message 9

The filing includes a value of 119,154,000 for us-gaap:StockIssuedDuringPeriodValueDividendReinvestmentPlan using the RetainedEarningsMember. This element is a credit element so, the value must be entered as a negative amount to reduce retained earnings.

The properties of this fact are:
Period: 2021-01-01 to 2021-12-31
Dimensions: us-gaap:StatementEquityComponentsAxis=us-gaap:RetainedEarningsMember
Unit: USD

Rule Element ID: 10152
Rule version: 24.0.0RC1

For Developers

The Global Rule Logic document contains general guidelines for implementation of rules. The rule message template contains text and parametric reference to arguments of the rule operation, using the syntax ${parameter} to indicate that insertion of a parameter's value is to occur.

General message template 1

The filing includes a value for dividends using the concept {$negativeDividends.concept.name} and the retained earnings member with a value of {$negativeDividends}. Dividends must be deducted from retained earnings. Please check that the sign of the dividends value is positive.

The properties of this fact are:
Period: {$negativeDividends.period}
Dimensions: {$negativeDividends.dimensions.join(', ','=')}
Unit: {$negativeDividends.unit}