IAS 10 specifies that adjusting events should be considered against two criteria to determine their treatment.The two criteria are:
A)(a) provides an indication that conditions may have existed at reporting date; or (b) reveals additional solid evidence of a condition that existed at reporting date.
B)(a) provides additional evidence of conditions that existed at the date the audit report was signed; or (b) reveals for the first time a condition that existed at date of completion.
C)(a) provides an indication that conditions may have existed at date of completion; or (b) reveals additional solid evidence of a condition that existed at date of completion.
D)(a) provides additional evidence of conditions that existed at reporting date; or (b) reveals for the first time a condition that existed at reporting date.

Question

Quizplus · Accepted Answer

IAS 10 requires that adjusting events should be assessed based on two criteria, namely whether they provide additional evidence of conditions that existed at the reporting date or whether they reveal for the first time a condition that existed at the reporting date. Therefore, option D is the correct choice as it refers to events that either provide additional evidence of conditions that existed at reporting date or reveal for the first time a condition that existed at the reporting date.

IAS 10 Specifies That Adjusting Events Should Be Considered Against