ISA 560

Question 1

What are subsequent events?

Answer 1

Events occuring between date of the FSs and date of the auditor’s report, and facts that become know to auditor after date of the auditor’s report

Question 2

What might FSs be affected by?

Answer 2

Events that occur after the date of FSs

Question 3

What does IAS 10 deal with?

Answer 3

The treatment in FSs of events occuring after the period period

Question 4

What are adjusting events?

Answer 4

Those that provide evidence of conditions that existed at date of the FSs

Question 5

What are non-adjusting events?

Answer 5

Those that provide evidence of conditions that arose after date of the FSs

Question 6

Adjusting events (court)

Answer 6

Settlement of a court case

Question 7

Adjusting events (inventory nrv)

Answer 7

Sale of inventory after year end providing evidence of its net realisable value at year end

Question 8

Adjusting events (fraud)

Answer 8

Fraud or error showing the accounts are incorrect

Question 9

Non-adjusting events (dividends)

Answer 9

Dividends declared after the year end

Question 10

Non-adjusting events (fire)

Answer 10

Fire causing destruction of major plant

Question 11

Non-adjusting events (restructuring)

Answer 11

Announcement of a major restructuring