Exam 24: Events Occurring After Balance Sheet Date

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Dividends declared after reporting date but before the authorisation for issue of the financial report do not meet the criteria of the present obligation because the identity of the shareholders is unknown until the date of payment.

(True/False)

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Question 21

Gowanland Co Ltd is being sued over damage to farmland as a result of an accident in which poisonous chemicals were mixed with fertiliser. At reporting date there was no information about the court decision and a contingent liability had been disclosed. Subsequent to the reporting date, the court handed down its decision and upheld a substantial claim for damages. According to AASB 110 how should this event be treated in the financial statements?

(Multiple Choice)

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Question 22

Dividends declared after the reporting period but before the authorization for issue of the financial report are typically recognized as a liability.

(True/False)

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Question 23

AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment. The two criteria are:

(Multiple Choice)

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Question 24

The requirements of AASB 110 for additional disclosures in the face of going-concern difficulties revealed after balance sheet date have been argued to be so extensive that they add financial pressure to a business already in financial distress:

(True/False)

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Question 25

AASB 110 requires the financial statements to be restated to a liquidation basis and for extensive additional disclosures to be made when a change in going-concern status occurs after reporting date:

(True/False)

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Question 26

Question 64: The following are material events that occurred for Hervey Bay Ltd between the reporting date and the date when the financial report is authorized for issue. Which of the following options identify all the adjusting events for Hervey Bay Ltd, in accordance with AASB 110 "Events after the reporting date"?

(Multiple Choice)

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Question 27

Wattle Ltd is in the process of completing its financial reports for the period ended 30 June 2009 when its accountant completes the collection of information about the realisable value of inventory as at reporting date. A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts. What treatment does AASB 110 require for this event?

(Multiple Choice)

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Question 28

The Directors' Declaration includes a statement that the entity can pay its debts as they fall due:

(True/False)

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Question 29

In AASB 110 "Events after the Balance Sheet Date", a contingent liability is an example of an adjusting event:

(True/False)

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Question 30

The following are material events that occurred for Fraser Island Ltd between the reporting date and the date when the financial report is authorized for issue. Which of the following options identify all the non-adjusting events for Fraser Island Ltd, in accordance with AASB 110 "Events after the reporting date"?

(Multiple Choice)

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Question 31

AASB 110 requires that adjusting events that meet two broad criteria should be:

(Multiple Choice)

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Question 32

In general a subsequent event is one that occurs, or the occurrence of which becomes known, after the reporting date:

(True/False)

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Question 33

The period covered by AASB 110 "Events occurring after balance sheet date" is from?

(Multiple Choice)

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Question 34

Cavalier Co Ltd is being sued for negligence in manufacturing a piece of equipment that has allegedly resulted in injury to an employee of the claimant business. The accident occurred after reporting date, but Cavalier has settled quickly so the outcome is now known before the authorisation date of the financial statements. The settlement is for a material amount. How should this transaction be recorded in the financial statements according to AASB 110?

(Multiple Choice)

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Question 35

Which of the following statements is incorrect with respect to AASB 110 "Events after the reporting date"?

(Multiple Choice)

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Question 36

A non-adjusting event is one that:

(Multiple Choice)

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Question 37

The following are material events that occurred for Virgil Ltd between the reporting date and the date when the financial report is authorized for issue. Which of the following options identify all the non-adjusting events for Virgil Ltd, in accordance with AASB 110 "Events after the reporting date"?

(Multiple Choice)

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Question 38

The disclosures AASB 110 requires for a material non-adjusting event include:

(Multiple Choice)

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Question 39

After the auditor has signed the audit report the next step in the process is to:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 62

Exam 24: Events Occurring After Balance Sheet Date

Dividends declared after reporting date but before the authorisation for issue of the financial report do not meet the criteria of the present obligation because the identity of the shareholders is unknown until the date of payment.

Dividends declared after the reporting period but before the authorization for issue of the financial report are typically recognized as a liability.

AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment. The two criteria are:

The requirements of AASB 110 for additional disclosures in the face of going-concern difficulties revealed after balance sheet date have been argued to be so extensive that they add financial pressure to a business already in financial distress:

AASB 110 requires the financial statements to be restated to a liquidation basis and for extensive additional disclosures to be made when a change in going-concern status occurs after reporting date:

The Directors' Declaration includes a statement that the entity can pay its debts as they fall due:

In AASB 110 "Events after the Balance Sheet Date", a contingent liability is an example of an adjusting event:

AASB 110 requires that adjusting events that meet two broad criteria should be:

In general a subsequent event is one that occurs, or the occurrence of which becomes known, after the reporting date:

The period covered by AASB 110 "Events occurring after balance sheet date" is from?

Which of the following statements is incorrect with respect to AASB 110 "Events after the reporting date"?

A non-adjusting event is one that:

The disclosures AASB 110 requires for a material non-adjusting event include:

After the auditor has signed the audit report the next step in the process is to:

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financ

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluation and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Lease

Set-Off and Extinguishment of Debt

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in E

Accounting for Share-Based Payments

Accounting for Income Taxes

Cash-Flow Statements

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Segment Reporting

Related-Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transact

Further Consolidation Issues Ii: Accounting for Minority Interests

Further Consolidation Issues Iii: Accounting for Indirect Ownershi

Further Consolidation Issues Iv: Accounting for Changes in the Deg

Accounting for Equity Investments

Accounting for Equity Investments

Accounting for Foreign Currency Transactions

Translation of the Accounts of Foreign Operations

Accounting for Corporate Social Responsibility

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