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11007 |
Dividends
IAS 10-pr12, 13
For dividends declared after the reporting
period,
(1) such dividends are not recognised as a
liability
at the end of reporting period
(2) such dividends are disclosed in the notes
Example:
reporting period: 1 January, 2009 - 31 December 2009
dividends were declared: 25 January 2010
financial statements were authorised for issued: 16 February 2010
Should such dividends be reported as a liability at 31 December 2009?
Answer: No.
Why: there was no "present obligation" at 31 December 2009
IAS 37-pr14
Provisions are recognised when the
following conditions are met:
(1) present obligation
(2) probable outflow of resources
(3) reliable estimate of amount
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International Accounting
Standards (IAS)