1. Which of the following events taking place after the year end but before the financial statements were authorised for issue would require adjustment in accordance with IAS 10 Events after the Reporting Period?
2. Which TWO of the following events which occur after the reporting date of a company but before the financial statements are authorised for issue are classified as ADJUSTING events in accordance with IAS 10 Events After the Reporting Period?
A. The determination of the sale proceeds of an item of plant sold before the year end
B. The destruction of a factory by fire
C. A change in tax rate announced after the reporting date, but affecting the current tax liability
D. The discovery of a fraud which had occurred during the year
3. Identify which of the following statements is FALSE in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets?
4. Should details of material adjusting or material non-adjusting events after the Statement of Financial Position date be disclosed in the notes to financial statements according to IAS 10 Events after the reporting period?
5. Which of the following material events after the reporting period and before the financial statements are approved are adjusting events? (Select all that apply)
6. If a material non-adjusting event occurs after the reporting date but before the financial statements are approved, which information should be disclosed in the financial statements?
7. Which of the following material events after the reporting period and before the financial statements are approved are adjusting events? (Select all that apply)
8. Which of the following would require a provision for a liability to be created by Calton at its reporting date of 31 October 2020?
9. Cameray is preparing its financial statements for the year ended 30 September 2019. Cameray is facing a number of legal claims from its customers with regards to a faulty product sold. The total amount being claimed is $2.6 million. Cameray’s lawyers say that the customers have an 80% chance of being successful.
According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, what amount, if any, should be recognised in respect of the above in Cameray’s statement of financial position as at 30 September 2019?
10. Which TWO of the following statements about provisions are true?
A. Changes in provisions should be applied retrospectively, adjusting the prior year financial statements
B. Future operating losses cannot be provided for
C. Provisions should be discounted to present value if the effect of the time value of money is material
D. Provisions should be accounted for prudently, reflecting the maximum that could possibly be paid out