Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 23 

KAPLAN PUBLISHING

 

487 

83  IAS 10 Events after the Reporting Period regulates the extent to which 

events after the reporting period date should be reflected in financial 

statements. 

Which of the following lists of such events consists only of items 

that, according to IAS 10 Events After the Reporting Period should 

normally be classified as non-adjusting? 

A 

Insolvency of a receivable whose account receivable was 

outstanding at the statement of financial position date, issue of 

shares or loan notes, a major merger with another entity 

B 

issue of shares or loan notes, changes in foreign exchange rates, 

major purchases of non-current assets 

C 

A major merger with another entity, destruction of a major non-

current asset by fire, discovery of fraud or error which shows that the 

financial statements were incorrect 

D 

Sale of inventory giving evidence about its value at the statement of 

financial position date, issue of shares or loan notes, destruction of a 

major non-current asset by fire