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CMA Intermediate · Corporate Accounting and Auditing · Events after the Reporting Period (Ind AS 10)

Ind AS 10 identifies two types of events after the reporting period. Which pair correctly describes them?

The two types are adjusting events, which provide evidence of conditions that existed at the end of the reporting period, and non-adjusting events, which indicate conditions that arose after the reporting period. Favourable or unfavourable nature does not decide the classification.

  1. AEvents providing evidence of conditions existing at the end of the reporting period, and events indicative of conditions that arose after the reporting periodCorrect
  2. BEvents that are favourable, and events that are unfavourable, to the entity
  3. CEvents within the entity's control, and events outside its control
  4. DEvents occurring before the audit report date, and events occurring after it

Explanation

The standard classifies events as adjusting (evidence of conditions existing at the end of the reporting period) or non-adjusting (conditions arising after the period). Favourable and unfavourable events are both covered by the definition but are not the two types. Control and audit report date are not the classification basis.

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