Which of the Following Subsequent Events Would Require an Adjustment

question 131

Multiple Choice

Which of the following subsequent events would require an adjustment to the financial statements under IFRS?

• A) The company issues shares shortly after year-end.
• B) An uninsured fire loss occurred early in the subsequent year.
• C) A major customer declares bankruptcy early in the New Year.
• D) The company reaches an agreement early in the new year to refinance certain current liabilities over an additional two-year period.

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Definitions:

Cognitive Substitution

The replacement or supplementation of a missing cognitive function through the use of an alternative cognitive strategy or external aid.

Physical Maturation

The process of physical growth and development of the body, reaching full biological adulthood and sexual development.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops.

Genetic Predisposition

The increased likelihood of developing a particular disease or trait based on a person's genetic makeup.