Dividends declared after the balance date but before the financial statements are authorised for issue:
A) meet the recognition criteria for a liability.
B) satisfy the recognition criteria for an expense.
C) do not meet the AASB 137 criteria of a present obligation.
D) are recognised in the statement of financial position as they meet the definition of equity.

Question

Quizplus · Accepted Answer

Dividends declared after the balance date but before the financial statements are authorised for issue do not meet the AASB 137 criteria of a present obligation because they do not represent an outflow of resources embodying economic benefits that the entity is presently obliged to make as of the balance sheet date.

Dividends Declared After the Balance Date but Before the Financial