Dividends LO8, 9 The directors of Surf Ltd are preparing the annual report for the company
Question:
Dividends LO8, 9 The directors of Surf Ltd are preparing the annual report for the company at 30 June 2019. The directors anticipate that the company will pay a dividend of $1.00 per share subsequent to the annual general meeting scheduled for 13 August 2019. This information will be included in the directors’ report as well as in a release to the public concerning the annual performance of the company. The group accountant of Surf Ltd is unsure as to whether or not the dividend should be shown as a liability in the statement of financial position at 30 June 2019. Required Provide a recommendation to the group accountant on what action should be undertaken in relation to accounting for the dividend.
Step by Step Answer:
Financial Reporting
ISBN: 978-0730363361
2nd Edition
Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes