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 recognition criteria for liabilities.

Question

Quizplus · Accepted Answer

Dividends declared after the reporting period do not meet the criteria for recognition as a liability because they are not present obligations at the end of the reporting period. They are not recognized until they are declared, which occurs after the reporting period.

Dividends Declared After the Reporting Period