A company's directors propose a final dividend at the year end, but shareholders have not yet approved it at the annual general meeting. How should the proposed dividend be treated in the financial statements for that year?

Not recognised as a liability in the financial statements, but disclosed by note, because no present obligation exists until shareholders approve it.

A Level Accounting

Statement of Changes in Equity Questions and Answers

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Question 1 of 5Statement of changes in equity / impairment

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