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If an SME declares dividends to holders of its equity instruments after the end of the reporting period, the SME a. shall not recognize those dividends as a liability at the end of the reporting period. b. may recognize those dividends as a liability at the end of the reporting period. c. may present the dividends declared as a segregated component of retained earnings at the end of the reporting period. d. a and b

If an SME declares dividends to holders of its equity instruments after the end of the reporting period, the SME a. shall not recognize those dividends as a liability at the end of the reporting period. b. may recognize those dividends as a liability at the end of the reporting period. c. may present the dividends declared as a segregated component of retained earnings at the end of the reporting period. d. a and b

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17. If an SME declares dividends to holders of its equity instruments after the end of the reporting period, the SME

a. shall not recognize those dividends as a liability at the end of the reporting period.

b. may recognize those dividends as a liability at the end of the reporting period.

c. may present the dividends declared as a segregated component of retained earnings at the end of the reporting period.

d. a and b

 

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