Which of the following material after balance sheet 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.
E) Dividends declared after the reporting date.

Question

Quizplus · Accepted Answer

Bonus payments determined after the reporting date are considered adjusting events because they result from conditions that arose before the balance sheet date.

Which of the Following Material After Balance Sheet Date Events