Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 24 - Full Disclosure in Financial Reporting - IFRS Insights - IFRS Concepts and Application - Page 1467: IFRS24-2

Answer

a. Since the note relates to a prior period, it is an adjusted subsequent event. b. The preference shares are unrelated to the previous period's financial statements; this is a non-adjusted event. c. The acquisition is unrelated to the activities that transpire before the date of the statement of financial position; the acquisition is a non-adjusted event. d. The flood’s destruction does not impact the situation of the financial statements; this is a non-adjusted event. e. The CEO’s demise is a non-accounting event that should not be adjusted in the financial statements. f. The additional wage-related costs must be adjusted since they impact the previous period's financial statement; the wages are adjusted for subsequent events. g. The income tax settlement is an adjusted subsequent event that impacts the previous period’s financial statement. h. Product mix changes are non-adjusted subsequent events that do not warrant changes in the previous financial statements.

Work Step by Step

a. Since the note relates to a prior period, it is an adjusted subsequent event. b. The preference shares are unrelated to the previous period's financial statements; this is a non-adjusted event. c. The acquisition is unrelated to the activities that transpire before the date of the statement of financial position; the acquisition is a non-adjusted event. d. The flood’s destruction does not impact the situation of the financial statements; this is a non-adjusted event. e. The CEO’s demise is a non-accounting event that should not be adjusted in the financial statements. f. The additional wage-related costs must be adjusted since they impact the previous period's financial statement; the wages are adjusted for subsequent events. g. The income tax settlement is an adjusted subsequent event that impacts the previous period’s financial statement. h. Product mix changes are non-adjusted subsequent events that do not warrant changes in the previous financial statements.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.