Management of Utopia Ltd Has Become Aware After Reporting Date

Multiple Choice

Management of Utopia Ltd 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 AASB 110,how should this event be treated in Utopia's financial statements?

A) The account receivable should be written off.
B) The event should be disclosed in the notes to the financial statements, including information about the financial effect of the customer's insolvency.
C) No reporting is required.
D) The directors are required to disclose the event in the Directors' Declaration.