Dividends declared after the reporting period
A) are not recognized as liabilities at the end of the reporting period.
B) are recognized as liabilities at the end of the reporting period.
C) represent a present obligation at the reporting period.
D) are considered to be adjusting-events.

Question

Quizplus · Accepted Answer

Dividends declared after the reporting period are not recognized as liabilities at the end of the reporting period because they do not represent an obligation of the entity at the balance sheet date.

Dividends Declared After the Reporting Period