IAS 10 Events After The Reporting Period

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MC Question 3

Each of the following events occurred after the reporting date of 31 March 2015, but before the financial statements
were authorised for issue.

Which would be treated as a NON-adjusting event under IAS 10 Events After the Reporting Period?

A

A public announcement in April 2015 of a formal plan to discontinue an operation which had been approved by
the board in February 2015

B

The settlement of an insurance claim for a loss sustained in December 2014

C

Evidence that $20,000 of goods which were listed as part of the inventory in the statement of financial position
as at 31 March 2015 had been stolen

D

A sale of goods in April 2015 which had been held in inventory at 31 March 2015. The sale was made at a
price below its carrying amount at 31 March 2015

Specimen
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MC Question 18

Which TWO of the following events which occur after the reporting date of a company but before the financial statements are authorised for issue are classified as ADJUSTING events in accordance with IAS 10 Events after the Reporting Period ?

(i)

A change in tax rate announced after the reporting date, but affecting the current tax liability

(ii)

The discovery of a fraud which had occurred during the year

(iii)

The determination of the sale proceeds of an item of plant sold before the year end

(iv)

The destruction of a factory by fire

A     (i) and (ii)
B     (i) and (iii)
C     (ii) and (iii)
D     (iii) and (iv)

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MC Question 20

Isaac is a company which buys agricultural produce from wholesale suppliers for retail to the general public.

It is preparing its financial statements for the year ending 30 September 2014 and is considering its closing inventory.

In addition to IAS 2 Inventories, which of the following IFRSs may be relevant to determining the figure to be included in its financial statements for closing inventories?

A     IAS 10 Events After the Reporting Period
B     IAS 11 Construction Contracts
C     IAS 16 Property, Plant and Equipment
D     IAS 41 Agriculture

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