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HTU CPA In-House Review (HCIR) Financial Accounting and Reporting TOA – EVENTS AFTER THE REPORTING PERIOD April G. 1.Events after the end of reporting period are favourable or unfavourable events that a.Occur between the end of the reporting period and the date of the next annual financial statements. b.Occur between the end of the reporting period and the date of the next interim or annual financial statements. c.Occur between the end of the reporting period and the date when the financial statements are authorized for issue. d.Occur between the end of reporting period and the date of the next interim financial statements. 2.Adjusting events are events that a.Provide evidence of conditions that existed at the end of the reporting period. b.Are favorable and indicative of conditions that arose after the end of the reporting period. c. Are unfavorable and indicative of condition that arose after the end of the reporting period. d.Provide of conditions that existed after the date the financial statements were authorized for issue. 3.When after the end of reporting period an event occurs that is indicative of conditions that arose after the end of reporting period. a. The entity shall disclose the nature and effect of the event in the financial statements. b.The entity shall adjust the related amount in the financial statements. c.The entity shall disclose the nature and effect of the event and adjust the related amount. d.The entity shall disclose the nature but not the effect of the event. 4.The financial statements are authorized for issue a.When the board of directors reviews the financial statements and authorizes them for issue. financial statements are authorized b.When the financial statements are made available to shareholders. c. When the shareholders approve the financial statements at their annual meeting. d.When the approved financial statements are filed with the regulatory body. 5.Which event after the reporting period would require adjustment before issuance of the financial statements? a.Loss of plant as a result of fire b.Change in the quoted market price of financial asset held as an investment c.Loss on inventory resulting from a storm surge d.Loss on a lawsuit the outcome of which was deemed uncertain at year-end. 6. Non adjusting events after the reporting period that require disclosure include all of the following, except a. A major business combination after the reporting period b.Announcing a plan to discontinue an operation c.Expropriation of major asset after reporting period d.Destruction of a major production plant by a fire before the end of the reporting period Announcing a plan to discontinue 7.Which event after the reporting period would require disclosure in the financial statements? a.Retirement of the president b.Settlement of litigation when the event that gave rise to the litigation occurred prior to the end of reporting period c.Strike employees d.Issue of a large amount of ordinary shares 1917Page 1 of 2 Which of the following events after the reporting period would require adjustment of the accounts before issuance of the financial statements?Which of the following events after the reporting period would require adjustment in an entity's financial statements? Bankruptcy of a customer, which occurs after the end of the reporting period and before the issuance of the statements, resulting in the loss of a trade receivable account.
What is adjustment of post balance sheet events?If events take place before the balance sheet date that trigger a lawsuit, and lawsuit settlement is a post balance sheet event, consider adjusting the amount of any contingent loss already recognized to match the amount of the actual settlement.
Which of the following post balance sheet events would generally require disclosure in the notes but no adjustment of the financial statements?Which of the following post-balance-sheetevents would generally require disclosure, but no adjustment of the financialstatements? b. Settlement oflitigation when the event that gave rise to the litigation occurred prior tothe balance sheet date.
Which of the following subsequent events events after the reporting date would require adjustment of the accounts before issuance of the financial statements?Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued? Settlement of litigation, in excess of the previously recorded liability.
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Which of the following post balance sheet events would require adjustment of the accounts before issuance?
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