You are working with other students analyzing a set of fi nancial statements as part of a group project.
One of your classmates states the following:
“I think there is a problem with the company’s financial statements. The statement of changes in equity indicates that the company declared dividends during the year, but there is no dividends payable account on the company’s statement of financial position.”

Required
Identify and explain the fl aws in your classmate’s logic.