The Following Are Material Events That Occurred for Virgil Ltd

question 42

Multiple Choice

The following are material events that occurred for Virgil Ltd between the reporting date and the date when the financial report is authorised for issue.
$\begin{array}{|l|l|}\hline \text { I}& \text { Bankruptcy of a customer that occurs after the reporting date } \\\hline \text { II } & \begin{array}{l}\text { Determination after the reporting date of the costs assets purchased before the } \\\text { reporting date }\end{array} \\\hline \text { III} & \begin{array}{l}\text { Decline in market value of investments after the reporting date of investments } \\\text { purchased before the reporting date }\end{array} \\\hline \mathrm{IV} & \text { Dividends declared after the reporting date } \\\hline \mathrm{V} & \text { A lawsuit filed by a customer after the reporting date } \\\hline \text { VI }& \text { Discovery of fraud that shows that the financial report is incorrect }\\\hline\end{array}$
Which of the following options identify all the non-adjusting events for Virgil Ltd,in accordance with AASB 110 Events After the Reporting Period?

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

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Definitions:

Probability

A measure quantifying the likelihood that certain events will occur.

Null Hypothesis

Re-phrased: The presumption in statistical testing that asserts no association or effect among studied variables.

Critical Value

A threshold in hypothesis testing that defines the boundary beyond which an observed test statistic is considered statistically significant.

Level of Significance

A threshold used in hypothesis testing that determines the probability of wrongly rejecting a true null hypothesis.