Events Occurring After The Reporting Date

This question bank verified by Studydeets
All Questions
Filter by:
Question 1
Free
True/False

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.

Choose correct answer/s

True

False

Check answer
Question 2
Free
True/False

Dividends declared after the reporting date but before the authorisation for issue of the financial report are typically recognised as a liability.

Choose correct answer/s

True

False

Check answer
Question 3
Free
True/False

Bonus payments that are part of an existing agreement with employees determined after the reporting date is an example of an adjusting event.

Choose correct answer/s

True

False

Check answer
Question 4
Free
True/False

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.

Choose correct answer/s

True

False

Check answer
Question 5
Free
True/False

Only material events should be considered for events occurring after balance date.

Choose correct answer/s

True

False

Check answer
Question 6
True/False

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

Choose correct answer/s
True
False
To unlock the question
Question 7
True/False

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

Choose correct answer/s
True
False
To unlock the question
Question 8
True/False

IAS 10 treats after-reporting-period assessments of the going concern basis of accounting as adjusting entries.

Choose correct answer/s
True
False
To unlock the question
Question 9
True/False

IAS 10 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.

Choose correct answer/s
True
False
To unlock the question
Question 10
True/False

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

Choose correct answer/s
True
False
To unlock the question
Question 11
True/False

Dividends declared and proposed after reporting date may be recognised as a liability and this is consistent with IAS 10.

Choose correct answer/s
True
False
To unlock the question
Question 12
True/False

In IAS 10 Events After the Reporting Period,a contingent liability is an example of an adjusting event.

Choose correct answer/s
True
False
To unlock the question
Question 13
True/False

In IAS 10 Events After the Reporting Period,a legal claim that has subsequently been settled is an example of an adjusting event.

Choose correct answer/s
True
False
To unlock the question
Question 14
True/False

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.

Choose correct answer/s
True
False
To unlock the question
Question 15
Multiple Choice

The period covered by IAS 10 Events After the Reporting Period is from:

Choose correct answer/s
A
date of the report to date of release to shareholders.
B
reporting date to date financial report is authorised for issue.
C
balance date to reporting date.
D
balance date to date financial reports are presented to the board of directors.
To unlock the question
Question 16
Multiple Choice

The 'authorisation date' of the financial reports of companies is:

Choose correct answer/s
A
the date the auditor prepares the audit report.
B
the date on which the printing of the reports is completed or they are posted on a website.
C
the date the reports are posted to stakeholders.
D
the date the Directors' Report and Financial Statements are signed.
To unlock the question
Question 17
Multiple Choice

Reporting events after reporting date is concerned with:

Choose correct answer/s
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.
To unlock the question
Question 18
Multiple Choice

If it becomes known after reporting date that a debtor is now not able to pay a material amount that is owed to the reporting entity,the appropriate action according to IAS 10 is to:

Choose correct answer/s
A
Adjust the balance of accounts receivable and write off the bad debt and make a note disclosure that this event occurred after reporting date.
B
Adjust the balance of accounts receivable and write off the bad debt.
C
Disclose the event in the notes to the accounts.
D
Do nothing this period but write the debt off in the accounts for the next period.
To unlock the question
Question 19
Multiple Choice

If an event or transaction that occurs after reporting date does not relate to conditions that existed at reporting date then:

Choose correct answer/s
A
No action should be taken to report the event or transaction in the financial reports.
B
The statement of financial position should not be adjusted but effects on the statement of comprehensive income should be reflected in that statement.
C
The event or transaction should be disclosed in the notes to the accounts as a post-reporting date event and the financial statements adjusted appropriately.
D
The event or transaction should be disclosed in the notes to the accounts if it is material.
To unlock the question
Question 20
Multiple Choice

A non-adjusting event is one that occurs:

Choose correct answer/s
A
after the reporting date.
B
after the auditor has signed the audit report.
C
after the completion of the financial reports.
D
after the financial statements have been distributed.
To unlock the question