P Limited owns 80% of the ordinary shares of S Limited, a company that has legitimately accrued a proposed dividend at the reporting date. However, P Limited has mot taken credit for its share of that dividend.

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EXTRACTS FROM STATEMENTS OF FINANCIAL POSITION as at 31 December 2017 Current Liabilities Proposed ordinary dividends P Limited S Limited 100,000 50,000 The proposed dividends were approved by the shareholders prior to 31 December 2017.