1.

Each of the following events occurred after the reporting date of 31 March 2015, but before the financial statements were
authorised issue.Which would be treated as a NON-adjusting event under IAS 10 Events After the Reporting Period

a. A public announcement in April 2015 of a formal plan to discontinue an operation which had been approved by the board in
February 2015

b. The settlement of an insurance claim for a loss sustained in December 2014

c. Evidence that $20,000 of goods which were listed as part of the inventory in the statement of financial position as at 31 March
2015 had been stolen

d. A sale of goods in April 2015 which had been held in inventory at 31 March 2015. The sale was made at a price below its
carrying amount at 31 March 2015

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?

(i) A change in tax rate announced after the reporting date, but affecting the current tax liability

(ii) The discovery of a fraud which had occurred during the year

(iii) The determination of the sale proceeds of an item of plant sold before the year end

(iv) The destruction of a factory by fire

A (i) and (ii)

B (i) and (iii)

C (ii) and (iii)

D (iii) and (iv)

3. Isaac is a company which buys agricultural produce from wholesale suppliers for retail to the general public. It is preparing its
financial statements for the year ending 30 September 2014 and is considering its closing inventory. In addition to IAS 2
Inventories, which of the following IFRSs may be relevant to determining the figure to be included in its financial statements for
closing inventories? Ans A

A. IAS 10 Events After the Reporting Period

B. IAS 11 Construction Contracts

C. IAS 16 Property, Plant and Equipment

D. IAS 41 AgriculturE

4. The revised IAS 10 states that if an entity declares dividends after the reporting period, the entity __________ those dividends
as a liability at the end of the reporting period.

A. shall recognise

B. shall not recognise

C. is encouraged to recognise

D. is encouraged not to recognise

5. Which of the following is not an objective of IAS 10?

A. To prescribe when an entity should adjust its financial statements for events after the reporting period

B. To prescribe how an entity should distinguish favourable events from unfavourable

C. To prescribe the disclosures that an entity should give about the date when the financial statements were authorised for issue
and about events after the reporting period

D. To require an entity should not prepare its financial statement on a going concern basis if events after the reporting period
indicate the going concern assumption is not appropriate
6. Events after the reporting period are __________ events that occur between the end of the reporting period and the date when
the financial statements are authorised for issue. Ans c and d

A. predictable

B. non-predictable

C. favourable

D. unfavourable

E. B and D

F. C and D

7. Which of the following information cannot indicate that the asset was impaired at the end of the reporting period? Ans c

A. The bankruptcy of a customer after the reporting period

B. The sale of inventories after the reporting period

C. The destruction of a major production plant by a fire after the reporting period

D. All of the above

8. JFK PLC, a customer of DEF PLC, was declared bankrupt on 5 July 2014 due to its deteriorating liquidity position after the
withdrawal of financial support by its bank since the past 3 months. DEF PLC was owed a material amount by JLK PLC as at 30 June
2014 which will not be recoverable. How should bankruptcy of the customer be accounted for in the financial statements for the
year ended 30 June 2

A. Adjust , ans

B. Disclose

C. Ignore

9. In a meeting held on 10 July, the Board of Directors announced a final dividend of $0.5 per share for the year ended 30 June
2014. How should the final dividend be accounted for in the financial statements for the year ended 30 June 2014?

A. Adjust

B. Disclose

C. Ignore

9. Events after the end of reporting period are favorable or unfavorable events that Events after the end of reporting period are
favorable or unfavorable events that Events after the end of reporting period are favorable or unfavorable events that

a. Occur between the end of the reporting period and the date of the next annual financial statements.

b. Occur between the end of the reporting period and the date of the next interim or annual financial statements.

c. Occur between the end of the reporting period and the date when the financial statements are authorized for issue.

d. Occur between the end of reporting period and the date of the next interim financial statements

10. Adjusting events are events that

a. Provide evidence of conditions that existed at the end of the reporting period.

b. Are favorable and indicative of conditions that arose after the end of the reporting period.

c. Are unfavorable and indicative of conditions that arose after the end of the reporting period.

d. Provide of conditions that existed after the date the financial statements were authorized for issuE

11. When after the end of reporting period an event occurs that is indicative of conditions that arose after the end of reporting
period
a. The entity shall disclose the nature and effect of the event in the financial statements.

b. The entity shall adjust the related amount in the financial statements.

c. The entity shall disclose the nature and effect of the event and adjust the related amount.

d. The entity shall disclose the nature but not the effect of the event.

12. The financial statements are authorized for issue

a. When the board of directors reviews the financial statements and authorizes them for issue.

b. When the financial statements are made available to shareholders

c. When the shareholders approve the financial statements at their annual meeting,

d. When the approved financial statements are filed with a regulatory body

16. Which event after the reporting period would require adjustment before issuance of the financial statements?

a. Loss of plant as a result of fire

b. Change in the quoted market price of financial asset held as an investment

c. Loss on inventory resulting from a storm surge

d. Loss on a lawsuit the outcome of which was deemed uncertain at year-end

17. Non-adjusting events after reporting period that require disclosure inchade all of the following, except

a. A major business combination after reporting period

b. Announcing a plan to discontinue an operation

c. Expropriation of major asset after reporting period

d. Destruction of a major production plant by a fire before the end of the reporting period

18. Which event after the reporting period would require disclosure in the financial statements?

a. Retirement of the president

b. Settlement of litigation when the event that gave rise to the litigation occurred prior

to the end of freporting period

c. Strike of employees

d. Issue of a large a amount of ordinary shares

19. Events after reporting period that provide evidence about conditions that existed at the current year-end and affect the
realizability of accounts receivable should be

b. Disclosed only in the notes

c. Used to record an adjustment to doubtful accounts expense.

d. Used to record an adjustment to retained earnings.

20. All of the following events would be classified as non-adjusting events after reporting period, except

a. The entity announced the discontinuance of the assembly operation

b. The entity entered into an agreement to purchase the currently leased office building

c. Destruction of a major production plant by fire

d. A mistake was discovered in the calculation of the allowance for uncollectible accounts receivable
21. Which statement is true regarding events after the end of reporting period?

a. Recognize a loss for all recognized and unrecognized subsequent events in the current year.

b. Recognize a gain or loss for any recognized subsequent event in the current year.

c. Recognize a loss for a recognized subsequent event inn the financial statements in the year when the subsequent event occurs.

d. Recognize a loss for a recognized subsequent event in the current year financial statements.

22. At the end of the current reporting period, an entity carried receivable from a major customer. The customer declared
bankruptcy after the end of reporting period but before the issuance of financial statements. What should be reported at the
current year- end?

a. Disclose the fact that the customer has declared bankruptcy

b. Make a provision for this post-reporting period event

c. Ignore the event

d. Reverse the sale pertaining to this receivable

23. An entity built a new factory building during the current year. Subsequent to the current year-end and before the financial
statements are issued, the building was destroyed by fire and the claim against insurance entity proved futile. What should be
reported at the current year-end?

a. Write off the carrying amount of the building

b. Make a provision for one-half of the carrying amount of the building

c. Make a provision for the entire carrying amount of the building

d. Disclose this non-adjusting event in the notes

24. An entity deals extensively in foreign currency transactions. Subsequent to the reporting period and before the date of
authorization for the issue of the financial statements, there were abnormal fluctuations in foreign currency rate. What should be
reported at the current year-end?

a. Adjust the foreign exchange year-end balances to reflect the abnormal adverse fluctuations.

b. Adjust the foreign exchange year-end balances to reflect all the abnormal fluctuations and not just adverse movements.

c. Disclose the post-reporting period event in the notes as a non-adjusting event.

d. Ignore the post-reporting period event.

25. Which of the following is not an objective of IAS 10?

a. To prescribe when an entity should adjust its financial statements for events after the reporting period

b. To prescribe how an entity should distinguish favorable events from unfavorable

c. To prescribe the disclosures that an entity should give about the date when the financial statements were authorized for issue
and about events after the reporting period

d. To require an entity should not prepare its financial statement on a going concern basis if events after the reporting period
indicate the going concern assumption is not annropriate

26. Which of the following information cannot indicate that the asset was impaired at the end of the reporting period?

a. The bankruptcy of a customer after the reporting period

b. The sale of inventories after the reporting period

c. The destruction of a major production plant by a fire after the reporting period

d. All of the above

a. Events after reporting period

b. Adjusting Events

c. Non-adjusting Events

d. Material Non-adjusting events

28. Those that are indicative of conditions that arise after the reporting period

a. Events after reporting period

b. Adjusting Events

c. Non-adjusting Events

d. Material Non-adjusting events

29. Those that provide evidence of conditions that existed at the end of the reporting period

a. Events after reporting period

b. Adjusting Events

c. Non-adjusting Events

d. Material Non-adjusting event

30. Events that occur after the December 31, 2011 balance sheet date (but before the balance sheet is issued) and provide
additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable
should be

a. discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report.

b. disclosed only in the Notes to the Financial Statements.

c. used to record an adjustment to Bad Debt Expense for the year ending December 34, 2011.

d. used to record an adjustment directly to the Retained Earnings account

31. Which of the following post-balance-sheet events would generally require disclosure, but no adjustment of the financial
statements?

a. Retirement of the company president

b. Settlement of litigation when the event that gave rise to the litigation occurred prior to the balance sheet date.

c. Employee strikes

d. Issue of a large amount of capital stock

32. Which of the following subsequent events (post-balance-sheet events) would require adjustment of the accounts before
issuance of the financial statements?

a. Loss of plant as a result of fire

b. Changes in the quoted market prices of securities held as an investment

c. Loss on an uncollectible account receivable resulting from a customer's major flood loss

d. Loss on a lawsuit, the outcome of which was deemed uncertain at year end.

33. 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 falls under?
a. Events after reporting period

b. Adjusting Events

c. Non-adjusting Events

d. Material Non-adjusting events

34. Which of the following material events after the reporting period and before the financial statements are approved are
adjusting events?

a. A valuation of property providing evidence of impairment in value at the Statement of Financial Position date.

b. Sale of inventory held at the Statement of Financial Position date for less than cost.

c. discovery of fraud or error affecting the financial statements

d. All of the above

35. 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?

a. An estimate of the financial effect only

b. No disclosure required

c. The nature of the event and an estimate of the financial effect

d. The nature of the event only

36. Which of the following material events after the reporting period and before the financial statements are approved are
adjusting events?

a. A factory with a value of 1,000,000 was destroyed by fire

b. The company issued 2,000,000 ordinary shares

c. A customer owing 1,500,000 went bankrupt

37. XVZ company on examining events after current reporting period concludes that there are indications that going concern basis
is not appropriate, entity shall

A.Prepare its financial statements on going concern basis.

B. Prepare only statement of financial position on going concern basis.

C. Prepare its statement of total comprehensive income on going concern basis.

D. Not prepare its financial statements on going concern basis.

38. Only favorable events that occur between end of reporting period and the date when the financial statements are authorized
for issue called events after reporting period. False

39. Favorable and unfavorable events that occur between end of reporting period and the date when the financial statements are
authorized for issue called events after reporting period. True

40. Board of directors of XYZ review annual financial statements and authorize for issue, after this financial statements are
submitted to share holder for approval

A. Financial statements are authorized for issue when board of directors approve

B. Financial statements are authorized for issue when shareholders approve.

C. Financial statements are authorized for issue when submitted with local regulatory body.

41. An entity identifies adjusting events after reporting period as per IAS 10

A. Entity shall adjust amount recognized in financial statements to reflect these events
B. Entity shall not adjust amount recognized in financial statements

C. Entity shall adjust amount recognized in next year's financial statements

42. An entity identifies non-adjusting events after reporting period as per IAS 10

A. Entity shall adjust amount recognized in financial statements to reflect these events.

B. Entity shall not adjust amount recognized in financial statements.

C. Entity shall adjust amount recognized in next year's financial statements.

43. If an entity declares dividends to holders of equity instruments after the reporting period, the entity shall not recognize those
dividends as a liability at the end of the reporting period. True