BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Insolvency of an account receivable which was outstanding at the end of the reporting period, issue of shares or loan notes, an acquisition of another company
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Issue of shares or loan notes, changes in foreign exchange rates, major purchases of non-current assets
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An acquisition of another company, destruction of a major non-current asset by fire, discovery of fraud or error which shows that the financial statements were incorrect
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Sale of inventory which gives evidence about its value at the end of the reporting period, issue of shares or loan notes, destruction of a major non-current asset by fire
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Detailed explanation-1: -IAS 10 requires an entity to adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting period. For instance, the settlement after the reporting period of a court case that confirms that the entity had a present obligation at the end of the reporting period.
Detailed explanation-2: -The events or conditions requiring disclosure may arise after the reporting period. issue and who gave that approval. If the entity’s owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact.
Detailed explanation-3: -IAS 10 Events after the Reporting Period prescribes when an entity should adjust its financial statements for events after the reporting period and the disclosures that an entity should give about the date when the financial statements were authorised and about events after the reporting period.