How to account for dividends declared with legal reserve? What's the double entries?

Question

Some countries (i.e Korea & Thailand) has the rules and regulation to keep certain percentages as a legal reserve when the company declare dividends. Wanted to find out what's correct double entry in accordance to IFRS, appreciated if someone briefly explain why the double entry has to be as such as well.

Cheers and Thanks~

Answer 1

I am not aware of specific provisions in the statutes of such countries. However generally speaking, double entries to set a aside some amount from revenue reserves would be as follows:

Dr Revenue reserve
Cr Specific provision