IAS 10 Requires That Adjusting Events That Meet Two Broad

question 57

Multiple Choice

IAS 10 requires that adjusting events that meet two broad criteria should be:

• A)reflected in the financial information in the statements if it is material and relates to an item that would normally be reflected in the financial statements.
• B)always disclosed by way of a note to the financial statements.
• C)disclosed as a contingent liability, if an unfavourable event.
• D)reflected in the financial statements, if an unfavourable event; disclosed by way of note, if a favourable event.

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Definitions:

Not-for-Profit Organization

An entity that operates for purposes other than generating profit, often focusing on social, educational, or charitable activities.

Private Property

The legal designation of the possession of property by non-governmental legal entities or individuals.

Private Enterprise System

An economic system where private individuals or groups have the right to own property and businesses and operate them for profit with minimal government interference.

Federal Taxes

Levies imposed by the government on income, corporate profits, and added to the cost of some goods, services, and transactions.