AASB 110 Refers to Subsequent Events That Relate to New

question 47

Multiple Choice

AASB 110 refers to subsequent events that relate to new matters that have arisen after balance date.Which of the following occurrences after balance date is not an example of a new event?

• A)substantial borrowings or share issues
• B)specific information on the size of a bad debt that had previously been considered doubtful
• C)a major fire or flood loss
• D)becoming a party to a legal action

---

Definitions:

Administration Support

The assistance and resources provided by administrative staff to ensure the efficient operation and success of programs or organizations.

Potential Members

Individuals who may become part of a group, organization, or system but have not yet joined or been formally incorporated.

Sponsoring Organization

An entity or group that supports a project or program, often providing funding or resources.

Contracts

Contracts are legally binding agreements between two or more parties that outline duties, rights, and conditions agreed upon by the parties.