alleryStart learning →Dividends declared after the reporting period must be
ARecognised as a liability at year-end
BRecognised as a year-end provision
CNetted against retained earnings
DKept out of year-end liabilities
Answer & Solution
Correct answer: D. Kept out of year-end liabilities
No obligation exists at the reporting date, so no liability is recognised for later-declared dividends.
Keep practising Ind AS 10 Events after the Reporting Period
Browse all Ind AS 10 Events after the Reporting Period questions for CA Final, or explore more Financialreporting topics.
Related questions
Appendix A applies only where all owners of the same class of equity areA non-cash dividend liability is recognised once the dividend isOn settling a non-cash dividend, the difference between asset and payable goes toWith a cash or non-cash choice, the dividend payable weighs fair value andA liability to pay a non-cash dividend is measured at theAppendix A to Ind AS 10 deals with the distribution ofInd AS 10 says 'approval for issue' where IAS 10 saysThe Ind AS 10 loan-waiver rule differs from IAS 10 because of changes made in