AASB 110 Refers to Subsequent Events That Relate to New

question 18

Multiple Choice

AASB 110 refers to subsequent events that relate to new matters that have arisen after balance date. Which of the following occurrences after balance date is not an example of a new event?

• A)becoming a party to a legal action
• B)a major fire or flood loss
• C)substantial borrowings or share issues
• D)specific information on the size of a bad debt that had previously been considered doubtful

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Definitions:

Oregonians

Oregonians are residents or natives of Oregon, a state in the Pacific Northwest region of the United States.

Terminal Illness

A disease or condition that is expected to lead to the death of the patient within a relatively short period of time.

Surviving Spouse

The term for a husband or wife who remains alive after the death of their spouse, often pertaining to legal and financial contexts.

Marital Difficulties

Problems or challenges faced within a marriage that can range from communication issues, financial stress, to lack of intimacy.