CFAS_ PAS 10 Events after the Reporting Period

Question 1

Non-Adjusting

Answer 1

(Adjusting or Non-Adjusting) Declaration of dividends after the reporting period

Question 2

Non-Adjusting

Answer 2

(Adjusting or Non-Adjusting) Change in Tax rate enacted after the reporting period

Question 3

Non-Adjusting

Answer 3

(Adjusting or Non-Adjusting) Changes in fair values, foreign exchange rates, interest rates, or market prices after the reporting period

Question 4

Authorization for use of the financial statements; Non-adjusting events after the reporting period

Answer 4

Required Disclosures for PAS 10

Question 5

Adjusting

Answer 5

(Adjusting or Non-Adjusting) The determination after the reporting period of the cost of asset purchased, or the proceeds from assets sold, before the end of reporting period

Question 6

Adjusting

Answer 6

(Adjusting or Non-Adjusting) The determination after the reporting period of the amount of profit-sharing or bonus payments, if the entity had a present legal or constructive obligation at the end of reporting period to make such payments

Question 7

Objectives of PAS 10

Answer 7

Prescribe when an entity should adjust its financial statements for events after the reporting period
Prescribe the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting period.

Question 8

Non-Adjusting

Answer 8

(Adjusting or Non-Adjusting) Announcing a plan to discontinue an operation after the reporting period

Question 9

Non-adjusting events

Answer 9

Events that are indicative of conditions that arose after the reporting date.
Not recognized in the financial statement, but will be disclosed if material and necessary in
order for the users to obtain a better understanding of the financial statements.

Question 10

Adjusting Events

Answer 10

Events that provide evidence of conditions existing at reporting date.
Recognized in the financial statement by adjusting the amounts of the affect line items.

Question 11

Adjusting

Answer 11

(Adjusting or Non-Adjusting) The discovery of fraud or errors that indicate that the finanicial statements are incorrect

Question 12

Scope of PAS 10

Answer 12

PAS 10 shall be applied in the accounting for, and disclosure of, events after the reporting period.

Question 13

Adjusting event

Answer 13

(Adjusting or Non-Adjusting) The settlement after the reporting period of a court case that confirms that the entity has a present obligation at the end of the reporting period

Question 14

Non-Adjusting

Answer 14

(Adjusting or Non-Adjusting) Casualty losses occurring after the reporting period but before the financial statements were authorized for issue

Question 15

False

Answer 15

(True or False) An entity shall prepare its financial statements on a going concern basis even if management determines either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so, after the reporting period.