ASC 505-20-50-1:

This references how stock dividends should be described to the public and the
corporation should try to by all means not to describe it as a stock split.
Paragraph 505-20-25-2 identifies a situation in which a stock dividend in form is a
stock split in substance. In such instances make every effort to avoid the use of
the word dividend in related corporate resolutions, notices, and announcements
and that, in those cases in which because of legal requirements this cannot be
done, the transaction be described, for example, as a stock split effected in the
form of a dividend. In ASC 505-20-25-2, this stock dividend in form is a stock split
in substance. The number of additional shares issued in this stock dividend was
so great that it had the effect of materially reducing the share market value
(reduced by 1/3). Given the substance of this dividend was clearly that of a stock
split, the Companys use of dividend in its disclosures was qualified to be
described as stock split affected in the form of a dividend. An example is given of
how a corporation, because of a legal requirement, may be able to describe it.