The Disclosures AASB 110 Requires for a Material Non-Adjusting Event

question 43

Multiple Choice

The disclosures AASB 110 requires for a material non-adjusting event include:

• A) The financial effect of the event or, where it is not possible to estimate the effect reliably, a statement to that effect.
• B) A description of why the event only came to be known of after balance sheet date.
• C) Details of the corporate governance procedures in place to ensure that further information regarding the event is gathered in a timely fashion.
• D) The financial effect of the event or, where it is not possible to estimate the effect reliably, a statement to that effect and a description of why the event only came to be known of after balance sheet date.
• E) All of the given answers.

---

Definitions:

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting its liquidity.

Future Cash Receipts

Expected cash inflows associated with the future operations of a business, such as revenue from sales or collections on accounts receivable.

Investment Decision

The process of evaluating and selecting from different investment opportunities, often focusing on risk assessment, return expectations, and alignment with overall financial goals.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit of the investment divided by the cost of the investment.