Which of the following material events after the reporting period and before the financial statements are approved by the directors should be adjusted for in those financial statements?
| 1 | A valuation of property providing evidence of impairment in value at the reporting period |
| 2 | Sale of inventory held at the end of the reporing period for less than cost |
| 3 | Discovery of fraud or error affecting the financial statements |
| 4 | Insolvency of a customer with a debt owing at the end of the reporing period which is still outstanding |
| 5 | A fire destroying some of the company's inventory (the company's going concern status is not affected). |
| 6 | An issue of shares to finance expansion. |
| 7 | Declaration of dividends. |
| 8 | Decline in market value of investments. |
| 9 | Announcement of changes in tax rates. |
| 10 | Announcement of a major restructing. |
Suggested Solutions
| Remarks | ||
| 1 | A valuation of property providing evidence of impairment in value at the reporting period | Adjusting |
| 2 | Sale of inventory held at the end of the reporing period for less than cost | Adjusting |
| 3 | Discovery of fraud or error affecting the financial statements | Adjusting |
| 4 | Insolvency of a customer with a debt owing at the end of the reporing period which is still outstanding | Adjusting |
| 5 | A fire destroying some of the company's inventory (the company's going concern status is not affected). | Non Adjusting |
| 6 | An issue of shares to finance expansion. | Non Adjusting |
| 7 | Declaration of dividends. | Non Adjusting |
| 8 | Decline in market value of investments. | Non Adjusting |
| 9 | Announcement of changes in tax rates. | Non Adjusting |
| 10 | Announcement of a major restructing/td> | Non Adjusting |
To do the same topic again in ACCA F3 Events after the reporting period