An entity is preparing its financial statements for the year ended 31 December 20X4. The following events occurred between the reporting date and the date the financial statements were authorised for issue on 15 March 20X5: - 3 January 20X5: A major credit customer, who owed $250,000 at 31 December 20X4, went into liquidation. The liquidator notified the entity that no payment would be made. The customer had been struggling for several months due to a recession in its specific industry. - 20 January 20X5: A fire destroyed a warehouse containing finished goods valued at $180,000 at the year-end. The warehouse and goods were fully insured. - 1 February 20X5: The entity settled a long-standing legal claim for $120,000. At 31 December 20X4, the entity had recorded a provision for this claim of $100,000 based on legal advice at that time. - 10 March 20X5: The government announced a change in the corporate tax rate from 25% to 30%, effective for all profits earned after 1 January 20X5. According to IAS 10, what is the net total adjustment to the profit for the year ended 31 December 20X4?

Harry Co has a reporting date of 31 December 20X4. The financial statements were authorized for issue on 15 March 20X5. The following events occurred between the reporting date and the date of authorization: - 31 January 20X5: A major credit customer, who owed Harry Co $450,000 at 31 December 20X4, went into liquidation. The customer had been experiencing well-documented financial difficulties for several months prior to the year-end. - 10 February 20X5: A batch of specialized inventory, which had cost $210,000 and was included in the year-end count at that value, was sold for a net price of $180,000. - 20 February 20X5: A fire destroyed one of Harry Co's warehouses. The carrying amount of the warehouse and its contents was $1.5 million. The company is fully insured, but its going concern status is not in doubt. - 28 February 20X5: The directors proposed a final dividend of $0.05 per share. What is the total reduction to the profit for the year ended 31 December 20X4 required by these events?

A company's reporting date is 31 December 20X5. On 1 February 20X6, the directors propose a final dividend of 500,000 for the year 20X5. On 1 March 20X6, the shareholders formally approve this dividend. The financial statements are authorised for issue on 15 March 20X6. What is the correct accounting treatment of this dividend in the 31 December 20X5 financial statements?