Events After the Reporting Date Are of Two Types

question 3

Multiple Choice

Events after the reporting date are of two types:
Type 1 Those that provide new evidence about conditions that existed at the reporting date
Type 2 Those that relate to new conditions arising after the reporting date
Which of the following statements is correct?

• A) Only type 1 events will affect the contents of the full annual report of the previous period
• B) Only type 2 events will affect the contents of the full annual report of the previous period
• C) Both type 1 and type 2 events will affect the contents of the full annual report of the previous period
• D) Neither type 1 nor type 2 events will affect contents of the full annual report of the previous period

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Definitions:

Governor

A device used to regulate the speed of machinery by automatically adjusting the supply of fuel, steam, or other power source.

Brake Chambers

Components in air brake systems, primarily in heavy vehicles, where pressurized air is converted into mechanical force to apply the brakes.

Slack Adjusters

Mechanisms that adjust the distance between a brake drum and brake lining to compensate for wear, crucial for maintaining effective brake function.