In the case of a non-adjusting event,AASB 110 requires it to be:
A) Reflected in the financial information in the statements if it is material and relates to an item that would normally be reflected in the financial statements.
B) Disclosed by way of note if it is material.
C) If an unfavourable material event, disclosed as a contingent liability.
D) If an unfavourable material event, reflected in the financial statements; if a favourable event, disclosed by way of note.
E) None of the given answers.

Question

Quizplus · Accepted Answer

A non-adjusting event is an event that occurs after the end of the reporting period, and it doesn't affect the amounts and disclosures in the financial statements. In this case, AASB 110 requires it to be disclosed by way of note if it is material. This means that it should be included in the notes to the financial statements, where users can find the information about the event and assess its potential impact on the entity's financial position and performance.

In the Case of a Non-Adjusting Event,AASB 110 Requires It