If an Adjusting Event That Occurs After Balance Sheet Date

question 22

Multiple Choice

If an adjusting event that occurs after balance sheet date is considered to be immaterial,AASB 110 requires that the entity:

• A) must disclose the nature of the event and a statement that an estimate of the financial effects cannot be made.
• B) must recognise the event at balance date.
• C) need not recognise nor disclose the event.
• D) must recognise the event at balance date and need not recognise nor disclose the event.
• E) None of the given answers.

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Definitions:

Internal Validity

The extent to which changes in the independent variable caused changes in the dependent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

In an experimental setting, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Internal Validity

The degree to which an experiment or study accurately measures or tests what it intends to, without the influence of external factors.