Dividends declared after the reporting period:
A) meet the criteria for recognition as a liability.
B) satisfy the criteria for recognition as an expense.
C) are recognised in the statement of financial position as they meet the definition of equity.
D) do not meet the AASB 132/IAS 32 recognition criteria for liabilities.

Question

Quizplus · Accepted Answer

Dividends declared after the reporting period do not meet the recognition criteria for liabilities as per AASB 132/IAS 32. They are recognized as an adjustment to the equity section of the statement of financial position.

Dividends Declared After the Reporting Period