Which of the Following Statements Is Incorrect with Respect to IAS

question 18

Multiple Choice

Which of the following statements is incorrect with respect to IAS 10 Events After the Reporting Period?

• A)An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting date.
• B)If an entity declares dividends to holders of equity instruments after the reporting date, the entity shall not recognise those dividends as a liability at the reporting date.
• C)An entity may prepare its financial statements on a going concern basis if management determines after the reporting date that it intends to go on voluntary liquidation.
• D)An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting date.

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Definitions:

Land Value

The market value of a piece of land, not including any buildings, improvements, or other structures on it.

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's shareholders or partners.

Short-term Capital Gains

Profits from the sale of an asset held for one year or less, taxed at ordinary income tax rates.

Tax Treatment

Refers to the method or rules applied in determining how an item or situation is taxed, affecting the financial outcome.