Events after the Reporting Period Flashcards
Financial statements with December 31, 2023 reporting date will be immediately
available on the same date.
False
Generally, the date of authorization of financial statements is when the financial
statements were actually filed with relevant regulatory body(ies).
False
PAS 10 covers the period between the end of the reporting period and the date
when the financial statements are authorized for issue.
True
Non-adjusting events are indicative of conditions that arose after the reporting
period.
True
Adjusting events are limited to disclosure in the notes.
False
Non-adjusting events are the general rule, while adjusting events are the
exceptions.
True
Anexample of adjusting event involves the bankruptcy ofa customer in the context
of estimating the amount of bad debts.
True
Going concern issues that arise after the reporting date indicating that the entity
will cease operations are disclosed only in the financial statements at the maximum.
An example of non-adjusting event involves the destruction of an asset after the reporting period.
True
If the shareholders approve the financial statements before filing with the relevant
regulatory agency(ies), the date of authorization of the financial statements is on
the date of the shareholders’ approval.
Generally, the date of authorization of financial statements is on the date
a. when the management has sent the draft financial statements to the external
auditor.
b. when the management and the auditor have agreed with the findings during the
external audit.
c. when the board of directors approved the financial statements for issue.
d. when the shareholders ratified and approved the financial statements for issue.
c. when the board of directors approved the financial statements for issue.
PAS 10 covers the period from
a. the beginning of the period covered by the financial statements until the date
the board of directors approved the financial statements.
b. the date after the reporting period until the date the board of directors approved
the financial statements.
c. the beginning of the period covered by the financial statements until the actual
filing of the financial statements.
d. the date after the reporting period until the actual filing of the financial statements.
b. the date after the reporting period until the date the board of directors approved
the financial statements.
Which of the following is not true regarding adjusting events?
a. These events are indicative of conditions that arose after the reporting period.
b. These events will result to adjustments to the entity’s recorded amounts.
c. Both a and b
d. Neither a or b
a. These events are indicative of conditions that arose after the reporting period.
Statement 1: Non-adjusting events provide evidence of conditions that existed at the
end of the reporting period.
Statement 2: Non-adjusting events are usually limited to disclosure in the notes.
S1 False
S2 True
The following events after the reporting date are adjusting events, except
a. settlement of court case that is pending as of the reporting date
b. sale of inventories
c. determination of the cost of assets acquired on or before the reporting date
d. destruction of equipment in a factory fire
d. destruction of equipment in a factory fire
Non-adjusting events occurring after the reporting date include the following,
except
a. dividends declaration
b. issuance of new shares
c. bankruptcy of customer
d. major acquisition of fixed assets
a. dividends declaration
The following events after the reporting period will affect the amounts in the entity’s
accounting records, except
a. discovery of errors committed during the reporting period covered by the
financial statements
b. determination of the cost of an asset acquired during the covered reporting
period
c. going concern issues
d. litigation arising from environmental damage that occurred after the reporting
period
d. litigation arising from environmental damage that occurred after the reporting
period
