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: IFRS24-3

Answer

The additional liability amount of 10,000 reduces the 2017 income. Therefore, this is an adjusted subsequent account. The flood-related loss of 80,000 has no impact on 2017's income; thus, it is a non-adjusted subsequent account.

Work Step by Step

The additional liability amount of 10,000 reduces the 2017 income. Therefore, this is an adjusted subsequent account. The flood-related loss of 80,000 has no impact on 2017's income; thus, it is a non-adjusted subsequent account.
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