Accounting · Accounting Standards
According to standard accounting practices (such as IAS 10), which of the following statements regarding the treatment of dividends is TRUE?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Dividends received from equity investments should be debited directly to the Statement of Changes in Equity.
- 2A final dividend proposed after the reporting date but before the financial statements are approved is not recognized as a liability at the reporting date.✓
- 3An interim dividend proposed after the reporting date is recorded as a liability in the current financial statement.
- 4Dividends paid on ordinary shares must be included as an expense in the Statement of Profit or Loss.
Correct answer
A final dividend proposed after the reporting date but before the financial statements are approved is not recognized as a liability at the reporting date.
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