After the year end and before the financial statements were authorised for issue, the directors announced their proposal to pay a final dividend of
Â£75,000 for the year. This has not been recognised in the financial statements.
Explain how this event will be dealt in the financial statements
Q13– An employee was dismissed in August. The former employee started legal
proceedings for unfair dismissal in October 20X6. The lawyers advise that Sunny
Ltd will probably lose the case and think that a reliable estimate of damages that
will be awarded against the company is Â£20,000.
Explain how this matter will be dealt in the financial statements
Q14– Olive Ltd has an investment in Bee Ltd. At 31 December 20X3 the directors of Bee Ltd have informally announced their intention to pay a dividend. Olive Ltd may
receive Â£20,000 in dividend income; however, this has not yet been confirmed.
According to accounting standard , how should Olive Ltd report this
transaction in its financial statements for the year ended 31 December 20X3?
31 December 20X3?