Exam 17: Events Occurring After the Reporting Date

Inventory reported at lower of cost or realisable amount that is found to be unsaleable after the reporting date should be treated as a non-adjusting event.

Hawk Plc has borrowed substantially in foreign currency loans.An unexpected major downturn in the British economy after reporting date has substantially weakened the British pound.It appears that Hawk Plc will not be able to meet the foreign currency debt as it falls due.According to IAS 10,how should this event be reported in the financial statements?

Management of Utopia Plc has become aware after reporting date that a major customer is insolvent.The customer apparently went into receivership before Utopia's reporting date and owes Utopia a material amount for inventory purchased during the period.According to IAS 10,how should this event be treated in Utopia's financial statements?

Events after reporting date should not be disclosed because the statement of financial position is 'as at' a particular date.

If an adjusting event that occurs after reporting date is considered to be immaterial IAS 10 requires that the entity:

If it becomes apparent to an entity that new events or conditions have resulted that indicate that the entity is no longer a going concern,the entity must:

Which of the following events would be an example of an event that casts doubts on the going concern status of the business?

Requirements other than those in IAS 10 regarding after-reporting-date events include:

IAS 10 specifies that adjusting events should be considered against two criteria to determine their treatment.The two criteria are:

The disclosures IAS 10 requires for a material non-adjusting event include:

Which of the following indicators is not an example of an event that casts doubts on the going concern status of the business?

Discuss the disclosure requirements for non-adjusting events as prescribed in IAS 10.

If non-adjusting events after the reporting date are material,non-disclosure could influence the economic decisions that users make based on the financial statements.

Explain the period covered by IAS 10 Events After the Reporting Period and discuss the accounting treatment required by IAS 10 if a material event arises during this period.

Banksia Plc is in the process of completing its financial reports for the period ended 30 June 2014 when it becomes public knowledge that company income tax rates are to be increased and that the increase is to apply retrospectively to the financial year just completed.What treatment is required by IAS 10 for this item?

Which of the following material after-reporting-date events is not considered a non-adjusting event?

IAS 10 requires that adjusting events that meet two broad criteria should be:

In the case of a non-adjusting event,IAS 10 requires it to be:

The following are material events that occurred for Hervey Bay Plc between the reporting date and the date when the financial report is authorised for issue. II Acquisition of a major business competitor III Discovery of inventory items damaged by floods before the reporting date IV Receipt of information after the reporting date indicating that an asset was impaired at reporting date Settlement of a court case outstanding for many years that confirms that the entity had a present obligation at the reporting date Major litigation arising solely out of events that occurred after the reporting date Which of the following options identify all the adjusting events for Hervey Bay Plc,in accordance with IAS 10 Events After the Reporting Period?

Requirements regarding events after the reporting date are contained in IAS 10 and Company Law.