ACCA Applied Knowledge · Financial Accounting · The main elements of financial statements
Which of the following items would be presented within equity in a company's statement of financial position under IFRS?
The revaluation surplus on land is presented in equity, as it is a gain recognised in other comprehensive income and held as a reserve. Redeemable preference shares and customer advances are liabilities, and a dividend declared after year end is not recognised at the reporting date.
- ARevaluation surplus on landCorrect
- BDividend declared after the reporting date
- CProceeds received in advance from customers
- DRedeemable preference shares with a mandatory redemption date
Explanation
A revaluation surplus arises from revaluing non-current assets and is shown in other components of equity. Redeemable preference shares with mandatory redemption are liabilities. Customer advances are liabilities (contract liabilities). A non-adjusting dividend declared after the reporting date is not recognised as a liability at that date.
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