If an Adjusting Event That Occurs After Balance Sheet Date

question 22

Multiple Choice

If an adjusting event that occurs after balance sheet date is considered to be immaterial,AASB 110 requires that the entity:

• A) must disclose the nature of the event and a statement that an estimate of the financial effects cannot be made.
• B) must recognise the event at balance date.
• C) need not recognise nor disclose the event.
• D) must recognise the event at balance date and need not recognise nor disclose the event.
• E) None of the given answers.

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Definitions:

Illegal Subject Matter

Refers to contracts that have an object which is against the law or public policy and hence unenforceable.

Age Of Majority

The legally defined age at which a person is considered an adult and capable of making certain legal decisions independently.

Legally Binding Contract

An agreement between two or more parties that is recognized by law and enforceable by the judicial system.

Great Britain

Great Britain is an island situated in the north-western coast of continental Europe, comprising England, Scotland, and Wales.