What is the accounting standard for 'Contingencies and Events Occurring after the Balance Sheet Date'?

AS-4

The correct answer is option 4- AS-4.

AS-4 deals with treatment in the financial statements of- contingencies events which occur after balance sheet date. For e.g. As per, AS-4, Contingencies and Events Occurring after the Balance Sheet Date prescribe that the proposed dividend will be shown in the Notes to Accounts. After the Proposed dividend is declared by the shareholders, it becomes a liability for the company and is accounted in the books. As a consequence, proposed dividend of previous year will be declared (approved) by the shareholders in the current year and this declared (approved) proposed dividend will be accounted during the year. The proposed dividend for the current year will be relevant for the next financial year.