Skip to content

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

Which of the following events occurring after the reporting period but before approval of the financial statements is listed in Ind AS 10 as a non-adjusting event that would generally result in disclosure?

Announcing a plan to discontinue an operation is listed as a non-adjusting event that generally results in disclosure. The other events give evidence of conditions existing at the reporting date and are therefore adjusting events.

  1. ASettlement of a court case confirming a present obligation that existed at the reporting date
  2. BDiscovery of fraud showing the financial statements were incorrect
  3. CAnnouncing a plan to discontinue an operationCorrect
  4. DReceipt of information showing an asset was impaired at the reporting date

Explanation

Announcing a plan to discontinue an operation is an example of a non-adjusting event that generally results in disclosure. The other options give evidence of conditions existing at the reporting date, so they are adjusting events, requiring changes to recognised amounts.

Did you get it right without looking?

One question tells you little. A timed set on Events after the Reporting Period (Ind AS 10) shows your real accuracy, how long you take and where you lose marks.

Practise Events after the Reporting Period (Ind AS 10)Free diagnostic mock

More Events after the Reporting Period (Ind AS 10) questions