Which of the following represents the difference between UK GAAP and IFRS with respect to proposed dividends?
A)Under UK GAAP, proposed dividends should not be recognized as a liability at the balance sheet date, whereas IFRS mandates proposed dividends to be accrued as a liability.
B)UK GAAP has provided no guidance on this issue, whereas IFRS prohibits the recognition of proposed dividends as accrued liability.
C)Under UK GAAP, proposed dividends should be accrued as a liability, whereas under IFRS, it should not be recognized as a liability at the balance sheet date.
D)IFRS has no specific guidance regarding the treatment of proposed dividends, whereas UK GAAP mandates proposed dividends to be recognized as accrued liability.

Question

Quizplus · Accepted Answer

Under UK GAAP, proposed dividends are recognized as a liability if they are declared before the balance sheet date. In contrast, IFRS does not allow proposed dividends to be recognized as a liability until they are approved by the shareholders.

Which of the Following Represents the Difference Between UK GAAP