Dividends are based on net profit, so they do not affect profits and losses, but affect rights and interests. The accounting entry is debit: profit distribution credit: dividend payable.
Brief introduction of non-recurring profit and loss
Non-recurring gains and losses refer to the income and expenses that are not directly related to the company's business operations, but are related to the business operations, but because of their nature, amount or frequency, they truly and fairly affect the company's normal profitability. The CSRC specifically pointed out in the question and answer. 1- Non-operating profit and loss of a public securities company.
Certified public accountants shall pay full attention to the non-recurring profit and loss items separately and verify the authenticity, accuracy and completeness of the non-operating profit and loss disclosed by the company in the notes to the financial report.
The concept of non-recurring gains and losses was first put forward by the CSRC in 1999, and it was then defined as one-off or accidental gains and losses other than the normal operating gains and losses of the company. "1 Q&A" pointed out that non-recurring gains and losses are income and expenses that are not directly related to enterprise operation.
And although it is related to enterprise operation, due to its nature, amount or frequency, it affects the income and expenditure that truly and fairly reflects the normal profitability of the company.