It was reported within the chapter that some years ago the chairperson of Australias biggest wine producer,

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It was reported within the chapter that some years ago the chairperson of Australia’s biggest wine producer, Southcorp Ltd, was critical of the requirements incorporated within AASB 141 because it would lead to the recognition of income in advance of when the company believed it should be reported. This could in turn cause some investors to question the dividends being paid on the basis that they were perceived to be too low. Critically evaluate this concern.

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