Exam 24: Events Occurring After Balance Sheet Date

Subsequent to the balance sheet 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?

An entity may adjust the amounts in the financial statements for items classified as non-adjusting events,for as long as there is reasonable assurance that the amounts recognised are measured reliably.

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

Dividends declared and proposed after balance sheet date may be recognised as liability and this is consistent with AASB 110:

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

Which of the following material after balance sheet date events is not considered an adjusting event?

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

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

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

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

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

The 'authorisation date' for entities that are not companies is:

Requirements other than those in AASB 110 regarding after-reporting-date-events include:

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

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?

Requirements regarding after-reporting-date-events are contained in AASB 110 and The Corporations Law:

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 following are material events that occurred for Yorba Linda 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 Yorba Linda Ltd,in accordance with AASB 110 "Events after the reporting date"?

An event occurring after balance sheet date is a circumstance that has arisen,or information that has become available,after reporting date but before the time of completion of the report:

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?