The following are material events that occurred for Hervey Bay Ltd between the reporting date and the date when the financial report is authorised for issue. \(\begin{array}{|l|l|} \hline \text { I }& \text { Acquisition of a major business competitor } \\ \hline \text { II } & \text { Discovery of inventory items damaged by floods before the reporting date } \\ \hline \text { III } & \begin{array}{l} \text { Receipt of information after the reporting date indicating that an asset was } \\ \text { impaired at reporting date } \end{array} \\ \hline \mathrm{IV} & \begin{array}{l} \text { Settlement of a court case outstanding for many years that confirms that the } \\ \text { entity had a present obligation at the reporting date } \end{array} \\ \hline \mathrm{V} & \text { Major litigation arising solely out of events that occurred after the reporting date } \\ \hline \text { VI }& \text { Dividends declared before the reporting date but paid after the reporting date }\\ \hline \end{array}\) Which of the following options identify all the adjusting events for Hervey Bay Ltd,in accordance with AASB 110 Events After the Reporting Period?

A) I, III and VI B) II, III and VI C) III, IV, V and VI D) IV, V and VI A) I, III and VI B) II, III and VI C) III, IV, V and VI D) IV, V and VI

Exam 23: Events Occurring After the End of the Reporting Period

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Banksia Ltd 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 AASB 110 for this item?

(Multiple Choice)

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Question 61

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

(Multiple Choice)

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Question 62

The period covered by AASB 110 Events After the Reporting Period is from:

(Multiple Choice)

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Question 63

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

(Multiple Choice)

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Question 64

The AASB 110 disclosure requirements for material non-adjusting events does not include:

(Multiple Choice)

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Question 65

Which of the following material after-reporting-date events is a non-adjusting event?

(Multiple Choice)

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Question 66

Subsequent to the reporting date but before the authorisation date of the financial reports,the dividend to be paid by Hannibal Ltd has been determined.How should this decision be recorded in the financial statements according to AASB 110?

(Multiple Choice)

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Question 67

In AASB 110 Events After the Reporting Period,a legal claim that has subsequently been settled is an example of an adjusting event.

(True/False)

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Question 68

A decline in market value of investments between the reporting date and the date the financial report is authorised for issue is typically an adjusting event.

(True/False)

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Question 69

The following are material events that occurred for Yorba Linda Ltd between the reporting date and the date when the financial report is authorised for issue. I Bankruptcy of a customer that occurs after the reporting date II Determination after the reporting date of the costs assets purchased before the reporting date III Decline in market value of investments after the reporting date of investments purchased before the reporting date Dividends declared after the reporting date A lawsuit filed by a customer after the reporting date VI Discovery of fraud that shows that the financial report is incorrect Which of the following options identify all the adjusting events for Yorba Linda Ltd,in accordance with AASB 110 Events After the Reporting Period?

(Multiple Choice)

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Question 70

AASB 110 treats after-reporting-period assessments of the going concern basis of accounting as adjusting entries.

(True/False)

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Question 71

The following are material events that occurred for Hervey Bay Ltd between the reporting date and the date when the financial report is authorised for issue. I Acquisition of a major business competitor II Discovery of inventory items damaged by floods before the reporting date III 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 VI Dividends declared before the reporting date but paid after the reporting date Which of the following options identify all the adjusting events for Hervey Bay Ltd,in accordance with AASB 110 Events After the Reporting Period?

(Multiple Choice)

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Question 72

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 73

In AASB 110 Events After the Reporting Period,a contingent liability is an example of an adjusting event.

(True/False)

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Question 74

Hawk Ltd has borrowed substantially in foreign currency loans.An unexpected major downturn in the Australian economy after reporting date has substantially weakened the Australian dollar.It appears that Hawk Ltd will not be able to meet the foreign currency debt as it falls due.According to AASB 110,how should this event be reported in the financial statements?

(Multiple Choice)

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Question 75

Disclosures required by AASB 110 relating to subsequent events that affect on the going concern status of the entity include:

(Multiple Choice)

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Question 76

Yandalup Ltd has a series of outback cattle stations.Subsequent to reporting date it is discovered that flooding before reporting date has destroyed several farm buildings,equipment and some stock.The loss is material in size.How should this event be reported according to AASB 110?

(Multiple Choice)

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Question 77

Showing 61 - 77 of 77

Exam 23: Events Occurring After the End of the Reporting Period

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

The period covered by AASB 110 Events After the Reporting Period is from:

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

The AASB 110 disclosure requirements for material non-adjusting events does not include:

Which of the following material after-reporting-date events is a non-adjusting event?

Subsequent to the reporting date but before the authorisation date of the financial reports,the dividend to be paid by Hannibal Ltd has been determined.How should this decision be recorded in the financial statements according to AASB 110?

In AASB 110 Events After the Reporting Period,a legal claim that has subsequently been settled is an example of an adjusting event.

A decline in market value of investments between the reporting date and the date the financial report is authorised for issue is typically an adjusting event.

AASB 110 treats after-reporting-period assessments of the going concern basis of accounting as adjusting entries.

In AASB 110 Events After the Reporting Period,a contingent liability is an example of an adjusting event.

Disclosures required by AASB 110 relating to subsequent events that affect on the going concern status of the entity include:

Yandalup Ltd has a series of outback cattle stations.Subsequent to reporting date it is discovered that flooding before reporting date has destroyed several farm buildings,equipment and some stock.The loss is material in size.How should this event be reported according to AASB 110?

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of 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

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

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 Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

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 Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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