Which of the following material after-reporting-date events is not considered a non-adjusting event?
A) a major business combination after the reporting date
B) destruction of a major production plant by fire after reporting date
C) changes in tax rates or tax laws enacted or announced after the reporting date
D) bonus payments determined after the reporting date

Question

Quizplus · Accepted Answer

Bonus payments determined after the reporting date are considered an adjusting event as they relate to the reporting period and should be included in the financial statements. The other options are non-adjusting events as they occur after the reporting period and are not reflected in the financial statements.

Which of the Following Material After-Reporting-Date Events Is Not Considered