Page 12 - PowerPoint Presentation
P. 12
EVENTS AFTER THE REPORTING PERIOD
Dividends
• If dividends to holders of equity instruments (as
defined in the statement on Financial Instruments:
Disclosure and Presentation – not part of this
module) are proposed or declared after the
reporting period, an entity must not recognise
those dividends as a liability at the reporting
period, as they do not meet the criteria of a
present obligation.
• It is important to note that an entity's past practice
of paying dividends does not give rise to a
constructive obligation and therefore still does not
warrant the recognition of a liability.
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