Which of the Following Represents the Difference Between UK GAAP

question 20

Multiple Choice

Which of the following represents the difference between UK GAAP and IFRS with respect to proposed dividends?

• A)Under UK GAAP, proposed dividends should not be recognized as a liability at the balance sheet date, whereas IFRS mandates proposed dividends to be accrued as a liability.
• B)UK GAAP has provided no guidance on this issue, whereas IFRS prohibits the recognition of proposed dividends as accrued liability.
• C)Under UK GAAP, proposed dividends should be accrued as a liability, whereas under IFRS, it should not be recognized as a liability at the balance sheet date.
• D)IFRS has no specific guidance regarding the treatment of proposed dividends, whereas UK GAAP mandates proposed dividends to be recognized as accrued liability.

---

Definitions:

Management

The process of planning, organizing, directing, and controlling resources to achieve organizational goals.

Capital

Financial assets or the financial value of assets, such as cash or goods, used in a business by a person, company, or organization to generate wealth through investment or production.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of devices, processes, or systems.

Labour Productivity

An indicator of economic effectiveness that evaluates the quantity of goods and services generated relative to the total hours labor contributes.