How Does IAS 10 Define Events That Occur After the Reporting

question 9

Multiple Choice

How does IAS 10 define events that occur after the reporting period?

• A)Favourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
• B)Unfavourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
• C)Both favourable and unfavourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
• D)All events occurring between the end of the reporting period and the date the accounts are authorised for issue,which would have a greater than 10% effect on the entities financial position.

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Definitions:

Treasury Stock

Securities initially distributed and subsequently bought back by the issuer, which lowers the quantity of shares actively traded on the market.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a residual claim on corporate earnings in the form of dividends.

Authorized

Pertains to the maximum number of shares a corporation is legally permitted to issue, as specified in its charter.

Stated Value

An assigned value to no-par value stock by the company for accounting purposes, often used to meet state regulations.