Which of the following events occurring after the reporting date but before the financial report is authorised for issue is NOT an example of an adjusting event?
A) a decline in the market value of a listed security;
B) the notification of the insolvency of a debtor;
C) an event that indicates that the going concern basis of accounting may not be appropriate;
D) the sale of inventories after the reporting date for an amount below cost.

Question

Quizplus · Accepted Answer

A decline in the market value of a listed security after the reporting date is a non-adjusting event as it does not provide evidence of conditions that existed at the end of the reporting period.

Which of the Following Events Occurring After the Reporting Date