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.