The Following Are Material Events That Occurred for Hervey Bay

question 59

Multiple Choice

The following are material events that occurred for Hervey Bay Plc between the reporting date and the date when the financial report is authorised for issue. $$\begin{array} { | l | l | } \hline \text { II } & \text { Acquisition of a major business competitor } \\\hline \text { III } & \text { Discovery of inventory items damaged by floods before the reporting date } \\\hline \text { IV } & \begin{array} { l } \text { Receipt of information after the reporting date indicating that an asset was } \\\text { impaired at reporting date }\end{array} \\\hline \mathrm { V } & \begin{array} { l } \text { Settlement of a court case outstanding for many years that confirms that the } \\\text { entity had a present obligation at the reporting date }\end{array} \\\hline \mathrm { VI } & \text { Major litigation arising solely out of events that occurred after the reporting date } \\\hline\end{array}$$ Which of the following options identify all the adjusting events for Hervey Bay Plc,in accordance with IAS 10 Events After the Reporting Period?

• A)I, III and VI
• B)II, III and VI
• C)III, IV, V and VI
• D)IV, V and VI

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence market prices.

Market Supply

The total amount of a product that sellers are willing and able to sell across all markets at a given price level over a specific time period.

Market Demand

The cumulative volume of a good or service that all buyers in a market are prepared and able to buy at a range of prices.

Decrease in Demand

This occurs when the quantity of a good or service that consumers are willing and able to purchase at a specific price level declines, due to factors such as changes in preference or income.