Yandalup Ltd has a series of outback cattle stations.Subsequent to reporting date it is discovered that flooding before balance sheet date has destroyed several farm buildings,equipment and some stock.The loss is material in size.How should this event be reported according to AASB 110?
A) No disclosure is required.
B) The event's financial effect should be recognised in the financial statements for the period.
C) The event's effect on the entity should be included in note disclosure.
D) Disclosure of the event in the Directors' Declaration is required by AASB 110.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The event's financial effect should be recognised in the financial statements for the period, as it is a material loss that occurred after the balance sheet date.

Yandalup Ltd Has a Series of Outback Cattle Stations