ACCA FA · Chapter 11 · Question 5 of 12
How should a material non-adjusting event after the reporting period be treated in the financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Disclose the nature of the event and an estimate of its financial effect in the notes
Explanation
Non-adjusting events do not change the amounts recognised at the reporting date. However, if they are material, IAS 10 requires disclosure of the nature of the event and an estimate of its financial effect (or a statement that an estimate cannot be made), so that users are not misled.
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