IAS 10

Question 1

What are adjusting events?

Answer 1

Provide evidence of conditions that existed at the reporting date

Question 2

What are non-adjusting events?

Answer 2

Indicative of conditions that arose after reporting period

Question 3

Settlement of a court case ongoing at reporting date

Answer 3

Adjusting event

Question 4

Receipt of information that asset was impaired at reporting date

Answer 4

Adjusting event

Question 5

Determination of proceeds of assets sold or assets brought before reporting period

Answer 5

Adjusting event

Question 6

Determination of a bonus payment if constructive obligation to pay it at reporting date

Answer 6

Adjusting event

Question 7

Discovery of fraud or errors resulting in incorrect FSs

Answer 7

Adjusting event

Question 8

Acquisitions or disposals of subsidaries

Answer 8

Non-adjusting

Question 9

Announcement of a plan to discontinue an operation or restructure operations

Answer 9

Non-adjusting

Question 10

Purchase or disposal of assets

Answer 10

Non-adjusting

Question 11

Destruction of asset through accident

Answer 11

Non-adjusting

Question 12

Ordinary share transactions including issue of shares

Answer 12

Non-adjusting

Question 13

Changes in asset prices, foreign exchange or tax rates

Answer 13

Non-adjusting

Question 14

Commencement of litigation arising from an event after reporting period

Answer 14

Non-adjusting

Question 15

Declaration of dividends after end of reporting period

Answer 15

Non-adjusting

Question 16

Evidence of a permanent dimunition in property value prior to year end

Answer 16

Adjusting

Question 17

Sale of inventory after reporting period for less than carrying value at year end

Answer 17

Non-adjusting

Question 18

Insolvency of customer with balance owing at year end

Answer 18

Adjusting

Question 19

Amounts received or paid in respect of legal or insurance claims which were in negotiation at year-end

Answer 19

Adjusting

Question 20

Determination after year end of sale or purchase price of assets sold or purchased before year end

Answer 20

Adjusting

Question 21

Evidence of permanent dimunition in the value of a long-term investment prior to year end

Answer 21

Adjusting

Question 22

Discovery of error or fraud which shows FS were incorrect

Answer 22

Adjusting

Question 23

Acquisition or disposal of subsidiary after year end

Answer 23

Non-adjusting

Question 24

Announcement of a plan to discontinue operation

Answer 24

Non-adjusting

Question 25

Major purchases and disposals of assets

Answer 25

Non-adjusting

Question 26

Destruction of a production plant by fire after reporting period

Answer 26

Non-adjusting

Question 27

Annoucement or commencing implementation of major restructuring

Answer 27

Non-adjusting

Question 28

Share transactions after reporting period

Answer 28

Non-adjusting

Question 29

Litigation commenced after reporting period

Answer 29

Non-adjusting

Question 30

I follow the revaluation model when it comes to PPE. So at the year end I had my cowshed revalued. The results came in 4 weeks after the year end but before the accounts were authorised for issue?

Answer 30

Adjusting

Question 31

I follow the revaluation model when it comes to PPE. So a month after the year end I had my cowshed revalued. The results came in 4 weeks later but before the accounts were authorised for issue. The cowshed showed an impairment because a week after the year end we were attacked by a rival bull crew from the mean fields of Manuresville.

Answer 31

Non-adjusting

Question 32

The settlement after the reporting date of a court case

Answer 32

Adjusting

Question 33

The receipt of information that indicates that an asset was impaired at the reporting date

Answer 33

Adjusting

Question 34

Discovery of fraud and error

Answer 34

Adjusting

Question 35

Determination after the reporting period of the amount of profit-sharing or bonus payments

Answer 35

Non-adjusting event

Question 36

Decline in market value of investments

Answer 36

Non-adjusting

Question 37

Major business combination

Answer 37

Non-adjusting

Question 38

Destruction of major production by fire

Answer 38

Non-adjusting

Question 39

Abnormally large changes after the reporting date in asset prices

Answer 39

Non-adjusting

Question 40

Change in foreign exchange rates relating to monetary balances?

Answer 40

Non-adjusting

Question 41

A customer entered insolvency?

Answer 41

Is adjusting if conditions existed at end of reporting period. However, non-adjusting if after

Question 42

Inventory being measured at lower of NRV and cost?

Answer 42

An adjusting event