Dividends declared after the balance date but before the financial statements are authorised for issue:

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 as they are not yet authorised for payment and therefore do not represent a legal or constructive obligation to pay the dividends. As a result, they cannot be recognised as a liability or an expense at the reporting date.

Dividends Declared After the Balance Date but Before the Financial