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IAS 10 - Events after the reporting period - TutnIQ
Table of contents X
  • Test your knowledge

    Test your knowledge of IAS 10 (Events after the Reporting Period).

  • Mikeville Limited

    Mikeville Limited's annual financial statements for the year ended 31 December 20X1 were authorized for issue on 28 February 20X2.

    On 31 November 20X1, the company was sued as a result of alleged environmental damage:

    • On 31 December the company's lawyers indicated that they believed that the company would win the case, but that there was a stronger than remote possibility that the company might actually lose the case.
    • On 15 February 20X2 the judge ruled against Mikeville Limited, ordering Mikeville Limited to rectify the environmental damage. It is estimated that this will cost $300,000.

    Answer the following questions relating to IAS 10 (Events after the Reporting Period). Assume all amounts to be material.

  • Is the ruling of the judge an adjusting event or non-adjusting event after the reporting period?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • What effect will the ruling of the judge have on the annual financial statements for the year ended 31 December 20X1?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • How would the legal case be shown in the annual financial statements for the year ended 31 December 20X1, if the judge had delivered his verdict on 1 March 20X2?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • Loganator Corp

    Loganator Corp's annual financial statements for the year ended 31 December 20X1 were authorized for issue on 28 February 20X2.

    On 15 January 20X2, a customer owing Loganator Corp $100,000 at 31 December 20X1, declared bankruptcy:

    • On 28 February 20X2, the management of Loganator Corp believed that the company would not receive anything from the bankrupt company.
    • On 25 March 20X2 the liquidator of the bankrupt company indicated that creditors would receive '10 cents on the dollar' in final settlement of outstanding amounts.

    The bankrupt company had been losing market share for a number or years as a result of cheap imports from Tarantistan.

    Answer the following questions relating to IAS 10 (Events after the Reporting Period). Assume all amounts to be material.

  • Is the bankruptcy of the customer an adjusting event or non-adjusting event after the reporting period?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • How will this matter be reflected in the annual financial statements of Loganator Corp for the year ended 31 December 20X1?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • Spemony Split Limited

    Spemony Split Limited's annual financial statements for the year ended 31 December 20X1 were authorized for issue on 28 February 20X2.

    On 17 February 20X2, there was a fire at a fuel depot operated by the company, causing damage of approximately $1,000,000.

    Answer the following questions relating to IAS 10 (Events after the Reporting Period). Assume all amounts to be material.

  • Is the fire an adjusting event or non-adjusting event after the reporting period?

    Please select the correct answer:

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

  • How will this matter be reflected in the annual financial statements of Spemony Split Limited for the year ended 31 December 20X1?

    Please select the correct answer(s):

    out of points awarded.

    Unregistered users can only do the first 5 questions. Please register and sign in!

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