If an Entity Receives Information After End of Reporting Period

question 22

Multiple Choice

If an entity receives information after end of reporting period that one of its assets was impaired at end of reporting period by a material amount it must:

• A) adjust the amounts recognised in the financial statements to reflect the impairment;
• B) notify all shareholders in writing;
• C) disclose the impairment in the notes but not recognise the amount in the financial statements;
• D) include the impairment loss as a contingent liability.

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Definitions:

Testing Them

A process of evaluating or examining individuals or items for specific characteristics, often used in research or quality control.

Testable Statements

Hypotheses or assertions that can be supported or refuted through empirical observation or experimentation.

Hypotheses

Tentative explanations or predictions that can be tested through observation and experimentation.

Phenomena

Observable facts or events that are subject to scientific examination and explanation.