Which of the following is NOT an adjusting event per IAS 10 Events after the Reporting Period in the financial statements for the year ended 31 March 20X7 which were approved on 11 June 20x7? Select one: 0 O a

Accounting Jan 19, 2021

Which of the following is NOT an adjusting event per IAS 10 Events after the Reporting Period in the financial statements for the year ended 31 March 20X7 which were approved on 11 June 20x7? Select one: 0 O a. The discovery of a material error in the financial statements on 24 May 20X7 b. An abnormally large movement in foreign exchange rates during May 20X7 C. The insolvency of a major customer on 17 April 20x7 O O d. An amount received on 3 June 20x7 in relation to an insurance claim that was being negotiated at the reporting date

Expert Solution

The answer is option B.

Option B is the non adjusting event as there is no condition existing on the reporting date. In all other three options there is a condition existing on the Reporting date.So those are adjusting events.

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