ACCA FA · Chapter 11 · Question 4 of 12
Under IAS 10 Events after the Reporting Period, which of the following events after the year end is an ADJUSTING event?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A major customer that owed money at the year end goes into liquidation
Explanation
Adjusting events provide evidence of conditions that existed at the reporting date. The customer's liquidation confirms that the receivable was already impaired at the year end. The fire, the share issue and the fall in market value all relate to conditions arising after the reporting date, so they are non-adjusting events.
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