Which of the following material after balance sheet date events is not considered a non-adjusting event
A) A major acquisition of capital assets after the reporting date.
B) Destruction of inventory by vandals after the reporting date.
C) Changes in tax rates or tax laws enacted or announced after the reporting date.
D) Destruction of inventory on consignment by vandals before the reporting date.
E) A major business combination after the reporting date

Question

Quizplus · Accepted Answer

The destruction of inventory on consignment by vandals before the reporting date is considered an adjusting event as it affects the financial statements for the period being reported on. The other events listed are considered non-adjusting events as they occur after the balance sheet date and do not affect the financial statements for the period being reported on.

Which of the Following Material After Balance Sheet Date Events