Dividends declared and proposed after reporting date may be recognised as a liability and this is consistent with AASB 110.

Question

Quizplus · Accepted Answer

According to AASB 110 (Events After the Reporting Period), dividends declared or proposed after the reporting date are not recognised as a liability in the financial statements because they do not meet the criteria for a present obligation as of the reporting date.

Dividends Declared and Proposed After Reporting Date May Be Recognised