CERTYNEX IFRS ACADEMY

Ratard's board declares in February a dividend for the year ended 31 December; the accounts are authorised in March. How does this dividend appear in the accounts for the year just ended?

It does not appear, since it will be recognised in the following year.

As a reduction of retained earnings at 31 December, with a liability at the same date.

In current liabilities at 31 December, for the amount declared in February.

In the notes only.