Disclosures Required by IAS 10 Relating to Subsequent Events That

question 4

Multiple Choice

Disclosures required by IAS 10 relating to subsequent events that affect on the going concern status of the entity include:

• A)the period over which the entity is expected to be able to continue trading.
• B)assets for which the going concern basis is not appropriate, the carrying amounts and the amounts for which the assets are expected to be realised.
• C)the directors' proposal for action to address the difficulties that have emerged since reporting date.
• D)the period over which the entity is expected to be able to continue trading and assets for which the going concern basis is not appropriate, the carrying amounts and the amounts for which the assets are expected to be realised.

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Definitions:

Socially Optimal Quantity

The level of output where the marginal benefit to society of consuming another unit equals the marginal cost of producing it, leading to the most efficient allocation of resources.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction or activity.

Subsidy

A financial aid provided by the government or a public body to reduce the cost or price of goods and services, encouraging production or consumption.

Command-And-Control Policy

It refers to environmental policies that rely on regulations (permission, prohibition, standard setting, enforcement) rather than economic incentives or market solutions.