Which of the following does not result in the recognition of a provision in the balance sheet?
A)the expected future warranty claims in respect of goods sold during the reporting period
B)a final dividend declared by directors after the reporting date
C)the amount of employee annual leave accrued but not taken at reporting date
D)the company has been held liable for damages for breach of copyright but the court is yet to determine the amount of damages payable to the copyright owner.

Question

Quizplus · Accepted Answer

A final dividend declared by directors after the reporting date is not recognized as a provision in the balance sheet as it is a post-balance sheet event and cannot be deemed to be a liability at the end of the reporting period.

Which of the Following Does Not Result in the Recognition