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.

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Definitions:

Empiricism

The theory that all knowledge is derived from sense-experience and observation.

Scientific Methods

Systematic, empirical methods of investigation aimed at discovering, interpreting, and revising factual knowledge.

Wilhelm Wundt

Known as the father of experimental psychology, he founded the first formal laboratory for psychological research at the University of Leipzig in 1879.

Biopsychosocial Perspective

An interdisciplinary model that examines human health and disease across biological, psychological, and social factors.