IAS 10 - Events after the Reporting Period

According to IAS10, what information should an entity disclose in the notes to the financial statements?

• All of them

• Information received after the reporting period

• The date when the financial statements were authorised for issue

• Who gave the authorisation for issue

According to IAS10, which of the following lists is considered as a non-adjusting event after the reporting date?

• Discovery of errors that show that the financial statements are incorrect

• Commencing a court case arising out of events after the reporting date

• The sale of inventories at a price lower than cost after the reporting date

• The bankruptcy of a major customer that confirms that a year-end receivable balance is irrecoverable

Company Lagia declared dividends to their shareholders on 31/3/20x. The date of the financial statements was approved for issue was on 20/2/20x1. Which of the below is correct under IAS10?

• It is a non-adjusting event after the reporting date with disclosing information in the note

• It is an adjusting event after the reporting date

• It is an non-adjusting event after the reporting date without any disclosure

• None of them

Company Pender declared dividends to shareholders after the reporting date of the year ended on 31/12/20x0 but before the date of the financial statements were approved for issue. How should dividends be recognised in the financial statements on 31/12/20x0?

• Liability(*)

• (*) & (**)

• Do nothing

• Disclosing in the notes (**)

The date that financial statements are authorised for issue may be given by:

• All of them

• The board of directors of the reporting entity

• The procedures prescribed for the preparing and finalising of the financial statements

• Statutory requirements

The management of Amboo Corp. was required to submit the financial statements to the board of directors by 20/2/20x8. The board of directors reviewed and authorised them for issue on 01/3/20x8. The financial statements were then approved by supervisory board on 18/3/20x8. On 20/3/20x8 these reports were sent to shareholders and regulatory body. The authorized date for issue the financial statements was:

• 20/2/20x8

• 20/3/20x8

• 18/3/20x8

• 01/3/20x8

Under IAS10, a non-adjusting event after the reporting period must be disclosed in the notes if it is:

• Has influences on making decision of the financial statements’ users

• Material

• Cannot estimate its financial effect

• All of them

Which of the below is an adjusting event after the reporting period in the financial statements under IAS10?

• Major purchase of some tangible assets after the reporting date

• The settlement of a court case which confirms a year-end obligation

• Declare dividends to shareholders after the reporting date

• The destruction of assets after the reporting date by flood

A non-adjusting event arising after the reporting date, but management cannot estimate its financial effect. What disclosure is required?

• Provision

• Adjusting in the financial statement as an adjusting event after the reporting period

• No disclosure

• A note regarding an estimate cannot be made

Which of the following is the correct definition in accordance with IAS 10?

• Events arising between the reporting date and the date of the financial statements are authorized for issue that are considered as non-adjusting events after the reporting date.

• Events arising between the reporting date and the date of the financial statements are authorised for issue that provide additional evidence of conditions existing at the reporting date are considered as adjusting events.

• Events arising between the reporting date and the date of the financial statements are authorised for issue that must not disclosed information in the note if they do not affect the situations at the reporting date.

• Events arising between the reporting date and the date of the financial statements are authorized for issue that are considered as adjusting events after the reporting date.