Subsequent events

Question 1

A Subsequent event for a period includes any event occurring after the balance sheet date for that period

Answer 1

False

Question 2

The financial effects of a recognized subsequent event are recorded in the financial statements for the year in which the subsequent event occurred

Answer 2

False

Question 3

Can entities choose whether to evaluate subsequent events through the date of financial statement availability or through the date of issueance

Answer 3

No

Question 4

Does IFRS require adjustment for share splits or reverse splits that occur after the reporting date but before the financial statements are issued

Answer 4

Yes

Question 5

Is the period for which evaluation of subsequent events ends for publicly traded firms usually the date the financial statements are available to be issued?

Answer 5

No

Question 6

If contracts are signed for products in 2012 and delivery is scheduled for 2015. Should XYZ company recognize the contracts in the 2012 financial statemetns?

Answer 6

No, because no transactions have taken place.

Question 7

A Subsequent event existing at the balance sheet date requires what kind of disclosure?

Answer 7

Recognition in the financial statements

Question 8

A Subsequent event that did not exist at the balance sheet date requires what kind of disclosure?

Answer 8

Footnote disclosure

Question 9

What are the two categories of subsequent events?

Answer 9

1. Existed at the balance sheet date

2. Did not exist at the balance sheet date