Dividends in arrears on cumulative preference shares should be reported as a current liability.

Name: Dividends in arrears on cumulative preference shares should be reported as a current liability.
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Quizplus · Accepted Answer

Dividends in arrears on cumulative preference shares are not a current liability; they are disclosed in the notes to the financial statements as they represent a commitment to pay dividends in the future, not an obligation that is currently due.

Dividends in Arrears on Cumulative Preference Shares Should Be Reported