Which of the Following Statements Is Incorrect with Respect to AASB

question 48

Multiple Choice

Which of the following statements is incorrect with respect to AASB 110 "Events after the reporting date"?

• A) An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting date.
• B) If an entity declares dividends to holders of equity instruments after the reporting date, the entity shall not recognise those dividends as a liability at the reporting date.
• C) An entity may prepare its financial statements on a going concern basis if management determines after the reporting date that it intends to go on voluntary liquidation.
• D) An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting date.
• E) An entity should disclose by way of a note to the financial statements adjusting events that cannot be quantified.

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Definitions:

Toxic Substances Control Act

A United States law, enacted in 1976, designed to regulate the introduction of new or previously existing chemicals.

Manufacture

The process of converting raw materials or components into finished goods through the use of labor, machinery, tools, and chemical or biological processing.

New Chemicals

Substances that have been recently developed or discovered and have not been previously identified or used in particular applications or industries.

Doha Amendment

An amendment to the Kyoto Protocol that includes new carbon emission reduction commitments for participating countries and was adopted in Doha, Qatar.