The directors of Pebbles Ltd are preparing the annual report for the company at 30 June 2024. The directors anticipate that the company will pay a dividend of $2.75 per share subsequent to the annual general meeting scheduled for 13 August 2024. 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 Pebbles 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 2024.

Required 

Provide a recommendation to the group accountant on what action should be undertaken in relation to accounting for the dividend.