If It Becomes Known After Reporting Date That a Debtor

question 12

Multiple Choice

If it becomes known after reporting date that a debtor is now not able to pay a material amount that is owed to the reporting entity,the appropriate action according to IAS 10 is to:

• A)Adjust the balance of accounts receivable and write off the bad debt and make a note disclosure that this event occurred after reporting date.
• B)Adjust the balance of accounts receivable and write off the bad debt.
• C)Disclose the event in the notes to the accounts.
• D)Do nothing this period but write the debt off in the accounts for the next period.

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Definitions:

Cerebral Palsy

A neurological disorder caused by a non-progressive brain injury or malformation that occurs while the child’s brain is under development, affecting body movement and muscle coordination.

Dermatome

Body segment corresponding to a segment of the spinal cord.

Spinal Segment

A section of the spinal cord defined by the pair of spinal nerves that emerge from it, responsible for specific sets of motor and sensory functions.

Body's Surface

The external part of the body exposed to the environment, including skin, which serves as a protective barrier and plays roles in sensation and temperature regulation.