Dividends Declared After the Balance Date but Before the Financial

question 18

Multiple Choice

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

• A) meet the criteria for recognition as a liability;
• B) satisfy the criteria for recognition as an expense;
• C) are recognised in the Statement of Financial Position as they meet the definition of equity;
• D) do not meet the IAS 37 criteria of a present obligation.

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Definitions:

Lens

A curved piece of glass or other transparent material that focuses or disperses light rays, used in glasses and cameras.

Fovea

The central focal point in the retina of the eye, around which the cones are densely packed for high visual acuity.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Thalamus

A part of the brain that acts as a principal relay station for transmitting sensory information.