AASB 110 Requires That Adjusting Events That Meet Two Broad

question 4

Multiple Choice

AASB 110 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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