proposed dividend 點解屬於reserves ?

Proposed dividend must be classified as reserves under the latest accounting standard. Since proposed dividend must be paid from retained earnings which retained earnings is a reserve. The proposed dividend which is going to be paid in the future from retained earnings (reserve) is still a reserve of the company at the balance sheet date.

On the other hand, it is not a liability since there is no contractual agreement between the company and the shareholder for the payment of dividend. Dividend is only a share of profit to shareholders but not an obligation of the company thus it is not a liability.