The Following Are Material Events That Occurred for Virgil Ltd

question 39

Multiple Choice

The following are material events that occurred for Virgil Ltd between the reporting date and the date when the financial report is authorized for issue. Which of the following options identify all the non-adjusting events for Virgil Ltd,in accordance with AASB 110 "Events after the reporting date"?

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

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Definitions:

Government Of Canada

The federal administration and institutions of Canada, responsible for national policy and governance.

Inflation Premium (IP)

The premium added to the real risk-free rate of interest to compensate for the expected loss of purchasing power. The inflation premium is the average rate of inflation expected over the life of the security.

Default Risk Premium (DRP)

The additional yield that investors demand to compensate for the risk of default by the issuer of a bond beyond the risk-free rate.

Liquidity Premium (LP)

Liquidity Premium refers to the extra return investors demand to compensate for investing in securities with low liquidity or those difficult to sell quickly at market value.