Auditing and Assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

Dividend @10% for the year 2059/60 has been proposed the company on Shrawan 30, 2060 (i.e. after the balance sheet date) and therefore not adjusted in the financial statement of 2059/60.

Answer
If dividend is proposed or declared after the balance sheet date, the enterprise should not recognize it as a liability at the balance sheet date. For this only disclosure should be made either on the face of the balance sheet or in the notes to the financial statements.



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