When after the end of the reporting period an event occurs that is indicative of conditions that arose after the end of the reporting period:
A)The entity discloses the nature and effect of the event in the financial statements.
B)The entity adjusts the related amounts recognised in the financial statements.
C)Both of the above statements are true.
D)None of the above

Question

Quizplus · Accepted Answer

Events after the reporting period that indicate conditions that arose after the end of the reporting period do not lead to adjustments in the financial statements. Instead, entities are required to disclose the nature of the event and its financial effect, if estimable.

When After the End of the Reporting Period an Event