Question

Dividends paid charged to retained earnings are classified as :

IFRS                                                                            ASPE

a) an operating activity.                                              either an operating or a financing activity

b) a financing activity.                                                either an operating or a financing activity

c) either an operating or a financing activity              an operating activity

d) either an operating or a financing activity.            a financing activity

Answer 1

Dividend paid charged to retained earnings are classified as

IFRS     ASPE

d) either an operating or a financing activity.            a financing activity

because

under IFRS dividend paid may be treated as either finance or operating activity

under ASPE dividend paid and charged to retained earnings is treated as financing activity

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