Management of Utopia Plc Has Become Aware After Reporting Date

question 43

Multiple Choice

Management of Utopia Plc has become aware after reporting date that a major customer is insolvent.The customer apparently went into receivership before Utopia's reporting date and owes Utopia a material amount for inventory purchased during the period.According to IAS 10,how should this event be treated in Utopia's financial statements?

• A)The account receivable should be written off.
• B)The event should be disclosed in the notes to the financial statements, including information about the financial effect of the customer's insolvency.
• C)No reporting is required.
• D)The directors are required to disclose the event in the Directors' Report.

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Definitions:

Ego Analysis

A psychoanalytic technique focusing on the functions of the ego in dealing with reality, defense mechanisms, and personal identity.

Aversion Therapy

A psychological treatment method that involves pairing a harmful stimulus with an undesirable behavior to reduce the behavior.

Time Limited Dynamic Psychotherapy

A form of psychotherapy that focuses on individual psychological processes and stresses the importance of interpersonal relationships, with therapy occurring within a set timeframe.

Behaviour Therapy

A treatment that emphasizes that problem behaviours are learned behaviours and that faulty learning can be reversed through the application of learning principles.