Question 1

Which of the following material after reporting date events is considered an adjusting event?

Accepted Answer

A) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date 
B) an announcement of a plan to discontinue a business operation 
C) decline in market value of investments between reporting date and the date when the financial report is authorised for issue 
D) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date, and decline in market value of investments between reporting date and the date when the financial report is authorised for issue 
A) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date 
B) an announcement of a plan to discontinue a business operation 
C) decline in market value of investments between reporting date and the date when the financial report is authorised for issue 
D) settlement after reporting date of a court case that confirms that the entity has a present obligation on reporting date, and decline in market value of investments between reporting date and the date when the financial report is authorised for issue

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

Wattle Plc is in the process of completing its financial reports for the period ended 30 June 2014 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 IAS 10 require for this event?

Accepted Answer

A) It should be disclosed in the Directors' Report. 
B) The effect on the accounts should be disclosed in the notes to the financial statements. 
C) No disclosure is required. 
D) The financial statements should be adjusted to reflect the impact of the event. 
A) It should be disclosed in the Directors' Report. 
B) The effect on the accounts should be disclosed in the notes to the financial statements. 
C) No disclosure is required. 
D) The financial statements should be adjusted to reflect the impact of the event.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) a court decision with immaterial damages against the business 
B) major uninsured fire damage 
C) recoverability of trade receivables during a recession 
D) denial of a significant credit line 
A) a court decision with immaterial damages against the business 
B) major uninsured fire damage 
C) recoverability of trade receivables during a recession 
D) denial of a significant credit line

Question 6

Reporting events after reporting date is concerned with:

Accepted Answer

A) information that becomes available between the date the reports are completed and the date the auditor signs the audit report. 
B) events that occur or information that becomes available after the directors sign the Directors' Report and Financial Statements and before the reports are printed. 
C) events or transactions that occur or about which information becomes available between reporting date and time of completion. 
D) events or transactions that occur or about which information becomes available between reporting date and reporting period date. 
A) information that becomes available between the date the reports are completed and the date the auditor signs the audit report. 
B) events that occur or information that becomes available after the directors sign the Directors' Report and Financial Statements and before the reports are printed. 
C) events or transactions that occur or about which information becomes available between reporting date and time of completion. 
D) events or transactions that occur or about which information becomes available between reporting date and reporting period date.

Which of the following material after reporting date events is considered an adjusting event?

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.

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

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

Reporting events after reporting date is concerned with:

An Overview of the International External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Income Taxes

The Statement of Cash Flows

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues III: Accounting for Indirect Ownership Interest

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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Exam 17: Events Occurring After the Reporting Date

Which of the following material after reporting date events is considered an adjusting event?

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.

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

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

Reporting events after reporting date is concerned with:

An Overview of the International External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Income Taxes

The Statement of Cash Flows

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues III: Accounting for Indirect Ownership Interest

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

Filters