Which of the following material after-reporting-date events is a non-adjusting event?
A) major disposal of assets before the reporting date
B) expropriation of assets by government before the reporting date
C) issue of preference shares shortly after the reporting date
D) settlement before authorisation date of the financial report of a lawsuit filed by a customer three years ago

Question

Quizplus · Accepted Answer

Non-adjusting events are those that provide evidence of conditions that arose after the reporting period. The issue of preference shares shortly after the reporting date is an example of a non-adjusting event because it reflects the company's financial decisions and conditions that occurred after the balance sheet date.

Which of the Following Material After-Reporting-Date Events Is a Non-Adjusting