ACCA AA · Chapter 12 · Question 1 of 9
Which of the following events occurring after the reporting period would normally be an adjusting event under IAS 10?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A major customer that owed money at the year end goes into liquidation
Explanation
An adjusting event provides evidence of conditions that existed at the reporting date. A customer's liquidation shortly after the year end usually confirms that the receivable was impaired at the year end. A post year-end fire, share issue or announced closure reflects new conditions and would be non-adjusting, though possibly requiring disclosure.
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